Transmission of material in this release is embargoed until                                        
 8:30 a.m. (EDT) March 16, 2016                 USDL-16-0517

 Technical information: (202) 691-7000  Reed.Steve@bls.gov  www.bls.gov/cpi
 Media Contact:         (202) 691-5902  PressOffice@bls.gov 

 CONSUMER PRICE INDEX – FEBRUARY 2016

 The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.2 percent
 in February on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics
 reported today. Over the last 12 months, the all items index increased 1.0
 percent before seasonal adjustment.

 The energy index continued to decrease and was the major cause of the seasonally
 adjusted decline in the all items index, more than offsetting increases in the
 indexes for food and for all items less food and energy. The gasoline index fell
 sharply, declining 13.0 percent, and the indexes for fuel oil and electricity
 also decreased, though the index for natural gas rose.

 The food index increased 0.2 percent in February, as the food at home index rose
 for the first time since September. Major grocery store food group indexes were
 mixed. The index for all items less food and energy rose 0.3 percent. Increases
 in the indexes for shelter, apparel, and medical care were the largest
 contributors to the rise, but almost all major components increased in February.

 The all items index rose 1.0 percent over the last 12 months, a smaller increase
 than the 1.4-percent change for the 12 months ending January. The energy index
 fell 12.5 percent over the past year, with all of its major components
 declining. The food index advanced 0.9 percent, with the index for food at home
 declining but the food away from home index rising. The index for all items less
 food and energy rose 2.3 percent, its largest 12-month increase since May 2012.  


 Table A. Percent changes in CPI for All Urban Consumers (CPI-U): U.S. city
 average
                                                                               
                                                                               
                                  Seasonally adjusted changes from             
                                          preceding month                      
                                                                          Un-  
                                                                       adjusted
                                                                        12-mos.
                              Aug.  Sep.  Oct.  Nov.  Dec.  Jan.  Feb.   ended 
                              2015  2015  2015  2015  2015  2016  2016   Feb.  
                                                                         2016  
                                                                               
                                                                               
 All items..................    .0   -.1    .2    .1   -.1    .0   -.2      1.0
  Food......................    .2    .3    .1   -.1   -.2    .0    .2       .9
   Food at home.............    .2    .2    .0   -.3   -.4   -.2    .2      -.3
   Food away from home (1)..    .2    .5    .2    .2    .1    .3    .1      2.6
  Energy....................  -1.7  -3.7    .4    .3  -2.8  -2.8  -6.0    -12.5
   Energy commodities.......  -3.4  -6.8    .9    .7  -4.8  -4.8 -12.5    -20.9
    Gasoline (all types)....  -3.4  -7.1    .9    .8  -4.8  -4.8 -13.0    -20.7
    Fuel oil (1)............  -8.1  -2.4  -1.1  -1.3  -7.8  -6.5  -2.9    -32.1
   Energy services..........    .3   -.3   -.1   -.2   -.7   -.7    .1     -4.6
    Electricity.............    .2   -.1    .1    .2   -.4   -.7   -.2     -3.0
    Utility (piped) gas                                                        
       service..............    .6   -.9   -.9  -1.7  -1.9   -.6   1.0    -10.3
  All items less food and                                                      
     energy.................    .1    .2    .2    .2    .2    .3    .3      2.3
   Commodities less food and                                                   
      energy commodities....   -.1    .0   -.1   -.1   -.1    .2    .3       .1
    New vehicles............    .0    .0   -.1    .0    .0    .3    .2       .6
    Used cars and trucks....   -.3   -.2   -.1    .1    .2    .1    .2       .4
    Apparel.................    .2   -.4   -.5   -.1   -.2    .6   1.6       .9
    Medical care commodities    .2   -.1    .2    .2    .1    .4    .6      2.2
   Services less energy                                                        
      services..............    .2    .3    .3    .3    .2    .3    .3      3.1
    Shelter.................    .2    .3    .3    .2    .2    .3    .3      3.3
    Transportation services     .0    .1    .1    .5    .3    .4    .2      2.6
    Medical care services...    .0    .2    .7    .3    .1    .5    .5      3.9

   1 Not seasonally adjusted.


 Consumer Price Index Data for February 2016

 Food

 The food index increased 0.2 percent in February after being unchanged in January.
 The food at home index turned up in February, rising 0.2 percent after declining
 in recent months. The index for fruits and vegetables rose for the second month
 in a row, increasing 0.8 percent. The index for fresh fruits rose 2.3 percent,
 while the fresh vegetables index declined 0.4 percent. The index for nonalcoholic
 beverages rose 0.6 percent in February, its largest increase since November 2014.
 The index for cereals and bakery products also increased in February, rising
 0.2 percent. In contrast to these increases, the indexes for meats, poultry,
 fish, and eggs and for other food at home both declined slightly in February,
 each falling 0.1 percent, while the index for dairy and related products was
 unchanged. The food at home index has declined 0.3 percent over the past 12 months.
 The index for meats, poultry, fish, and eggs fell 3.7 percent over the span, and
 the index for dairy and related products declined 2.6 percent. The index for food
 away from home increased 0.1 percent in February and has risen 2.6 percent over
 the last 12 months. 

 Energy

 The energy index fell 6.0 percent in February, its third consecutive decline.
 The gasoline index was the primary factor in the decrease; it fell 13.0 percent.
 (Before seasonal adjustment, gasoline prices declined 9.9 percent in February,
 and the index has fallen over 50 percent since June 2014.) The fuel oil index
 also continued to decline, falling 2.9 percent after a 6.5 percent decrease in
 January. The electricity index declined slightly in February, falling 0.2 percent.
 The index for natural gas was the only component to rise, increasing 1.0 percent
 after falling in each of the 5 previous months. All the energy component indexes
 have declined over the last 12 months, with declines ranging from 3.0 percent
 (electricity) to 32.1 percent (fuel oil).  

 All items less food and energy

 The index for all items less food and energy increased 0.3 percent in February,
 the same increase as the prior month. The shelter index repeated its January
 increase of 0.3 percent, with the indexes for rent and for owners' equivalent
 rent both increasing 0.3 percent, and the index for lodging away from home rising
 0.9 percent. The apparel index rose sharply in February, increasing 1.6 percent,
 its largest increase since February 2009. The medical care index rose 0.5 percent,
 the same increase as in January, with the index for prescription drugs rising 0.9
 percent and the hospital services index advancing 0.5 percent. The index for motor
 vehicle insurance increased 0.4 percent in February, the same increase as last 
 month. The index for education rose 0.3 percent. The indexes for new vehicles,
 used cars and trucks, alcoholic beverages, recreation, and tobacco all increased
 0.2 percent in February. The indexes for personal care and for airline fares both
 edged up 0.1 percent, while the index for household furnishings and operations was
 unchanged. The communication index was one of the few to decline in February,
 falling 0.5 percent.

 The index for all items less food and energy increased 2.3 percent over the past
 12 months, a figure that has been slowly rising since it was 1.7 percent for the
 12 months ending May 2015. The index for shelter has risen 3.3 percent over the
 last year, its largest 12-month increase since the period ending September 2007,
 and the medical care index has increased 3.5 percent, its largest rise since
 October 2012.    

 Not seasonally adjusted CPI measures

 The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.0 percent
 over the last 12 months to an index level of 237.111 (1982-84=100). For the month,
 the index increased 0.1 percent prior to seasonal adjustment.  

 The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)
 increased 0.7 percent over the last 12 months to an index level of 230.972
 (1982-84=100). For the month, the index was unchanged prior to seasonal adjustment.  

 The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 0.5
 percent over the last 12 months. For the month, the index was unchanged on a not
 seasonally adjusted basis. Please note that the indexes for the past 10 to 12
 months are subject to revision.  

	
 The Consumer Price Index for March 2016 is scheduled to be released on Thursday,
 April 14, 2016, at 8:30 a.m. (EDT). 







 Facilities for Sensory Impaired

 Information from this release will be made available to sensory impaired individuals
 upon request.  Voice phone:  202-691-5200, Federal Relay Services:  1-800-877-8339.  

 Brief Explanation of the CPI
      
 The Consumer Price Index (CPI) is a measure of the average change in prices over
 time of goods and services purchased by households. The Bureau of Labor Statistics
 publishes CPIs for two population groups: (1) the CPI for Urban Wage Earners and
 Clerical Workers (CPI-W), which covers households of wage earners and clerical workers
 that comprise approximately 28 percent of the total population and (2) the CPI for All
 Urban Consumers (CPI-U) and the Chained CPI for All Urban Consumers (C-CPI-U), which
 covers approximately 89 percent of the total population and includes, in addition to
 wage earners and clerical worker households, groups such as professional, managerial,
 and technical workers, the self-employed, short-term workers, the unemployed, and
 retirees and others not in the labor force.
      
 The CPIs are based on prices of food, clothing, shelter, fuels, transportation fares,
 charges for doctors’ and dentists’ services, drugs, and other goods and services that
 people buy for day-to-day living. Prices are collected each month in 87 urban areas
 across the country from about 6,000 housing units and approximately 24,000 retail
 establishments-department stores, supermarkets, hospitals, filling stations, and other
 types of stores and service establishments. All taxes directly associated with the
 purchase and use of items are included in the index. Prices of fuels and a few other
 items are obtained every month in all 87 locations. Prices of most other commodities
 and services are collected every month in the three largest geographic areas and every
 other month in other areas. Prices of most goods and services are obtained by personal
 visits or telephone calls of the Bureau’s trained representatives.
      
 In calculating the index, price changes for the various items in each location are
 averaged together with weights, which represent their importance in the spending of the
 appropriate population group. Local data are then combined to obtain a U.S. city average.
 For the CPI-U and CPI-W separate indexes are also published by size of city, by region
 of the country, for cross-classifications of regions and population-size classes, and
 for 27 local areas. Area indexes do not measure differences in the level of prices among
 cities; they only measure the average change in prices for each area since the base
 period.  For the C-CPI-U data are issued only at the national level. It is important to
 note that the CPI-U and CPI-W are considered final when released, but the C-CPI-U is
 issued in preliminary form and subject to two annual revisions.
      
 The index measures price change from a designed reference date. For the CPI-U and the
 CPI-W the reference base is 1982-84 equals 100. The reference base for the C-CPI-U is
 December 1999 equals 100.  An increase of 16.5 percent from the reference base, for
 example, is shown as 116.500. This change can also be expressed in dollars as follows:
 the price of a base period market basket of goods and services in the CPI has risen
 from $10 in 1982-84 to $11.65. 
      
 For further details visit the CPI home page on the Internet at www.bls.gov/cpi/ or
 contact our CPI Information and Analysis Section on (202) 691-7000.




 Note on Sampling Error in the Consumer Price Index

 The CPI is a statistical estimate that is subject to sampling error because it is based
 upon a sample of retail prices and not the complete universe of all prices. BLS
 calculates and publishes estimates of the 1-month, 2-month, 6-month and 12-month percent
 change standard errors annually, for the CPI-U.  These standard error estimates can be
 used to construct confidence intervals for hypothesis testing. For example, the estimated
 standard error of the 1 month percent change is 0.04 percent for the U.S. All Items
 Consumer Price Index.  This means that if we repeatedly sample from the universe of all
 retail prices using the same methodology, and estimate a percentage change for each sample,
 then 95% of these estimates would be within 0.08 percent of the 1 month percentage change
 based on all retail prices.  For example, for a 1-month change of 0.2 percent in the All
 Items CPI for All Urban Consumers, we are 95 percent confident that the actual percent
 change based on all retail prices would fall between 0.12 and 0.28 percent. For the latest
 data, including information on how to use the estimates of standard error, see "Variance
 Estimates for Price Changes in the Consumer Price Index, January-December 2014."  These
 data are available on the CPI home page (www.bls.gov/cpi), or by using the following
 link: www.bls.gov/cpi/cpivar2014.pdf   

 Calculating Index Changes

 Movements of the indexes from one month to another are usually expressed as percent changes
 rather than changes in index points, because index point changes are affected by the level
 of the index in relation to its base period while percent changes are not.  The example
 below illustrates the computation of index point and percent changes.
      
 Percent changes for 3-month and 6-month periods are expressed as annual rates and are
 computed according to the standard formula for compound growth rates. These data indicate
 what the percent change would be if the current rate were maintained for a 12-month period.

 Index Point Change

 CPI                                                                     202.416
 Less previous index                                                     201.800
 Equals index point change                                                  .616



 Percent Change

 Index point difference                                                     .616
 Divided by the previous index                                           201.800
 Equals                                                                    0.003
 Results multiplied by one hundred                                     0.003x100
 Equals percent change                                                       0.3





 A Note on the Use of Seasonally Adjusted and Unadjusted Data

 Introduction

 The Consumer Price Index (CPI) produces both unadjusted and seasonally adjusted data.
 Seasonally adjusted data are computed using seasonal factors derived by the X-13ARIMA-SEATS
 Seasonal Adjustment Method. These factors are updated each February, and the new factors are
 used to revise the previous five years of seasonally adjusted data. For more information on
 data revisions and exceptions to the usual revision schedule, please see the Fact Sheet on
 Seasonal Adjustment (http://www.bls.gov/cpi/cpisaqanda.htm) and the Timeline of Seasonal
 Adjustment Methodological Changes (http://www.bls.gov/cpi/cpiseastimeline.htm).
 
 How to Use Seasonally Adjusted and Unadjusted Data

 For analyzing short-term price trends in the economy, seasonally adjusted changes are usually
 preferred since they eliminate the effect of changes that normally occur at the same time and
 in about the same magnitude every year—such as price movements resulting from changing
 climatic conditions, production cycles, model changeovers, holidays, and sales. This allows
 data users to focus on changes that are not typical for the time of year.  The unadjusted data
 are of primary interest to consumers concerned about the prices they actually pay. Unadjusted
 data are also used extensively for escalation purposes. Many collective bargaining contract
 agreements and pension plans, for example, tie compensation changes to the Consumer Price Index
 before adjustment for seasonal variation. BLS advises against the use of seasonally adjusted
 data in escalation agreements because seasonally adjusted series are revised annually.

 Intervention Analysis
 
 The Bureau of Labor Statistics uses Intervention Analysis Seasonal Adjustment for some CPI
 series. Sometimes extreme values or sharp movements can distort the underlying seasonal pattern
 of price change. Intervention Analysis Seasonal Adjustment is a process by which the distortions
 caused by such unusual events are estimated and removed from the data prior to calculation of
 seasonal factors. The resulting seasonal factors, which more accurately represent the seasonal
 pattern, are then applied to the unadjusted data. 

 2016 Series Adjusted Using Intervention Analysis Seasonal Adjustment

 For the seasonal factors introduced in January 2016, BLS adjusted 37 series using Intervention
 Analysis Seasonal Adjustment, including selected food and beverage items, motor fuels and natural
 gas. For example, this procedure was used for the Motor fuel series to offset the effects of
 events such as the response in crude oil markets to the worldwide economic downturn in 2008.

 Revision of Seasonally Adjusted Indexes
 
 Seasonally adjusted data, including the U.S. city average All items index levels, are subject to
 revision for up to five years after their original release. Every year, economists in the CPI
 calculate new seasonal factors for seasonally adjusted series and apply them to the last five years
 of data. Seasonally adjusted indexes beyond the last five years of data are considered to be final
 and not subject to revision. In January 2016, revised seasonal factors and seasonally adjusted
 indexes for 2011-2015 were calculated and published. For directly adjusted series, the seasonal
 factors for 2015 will be applied to data in 2016 to produce the seasonally adjusted 2016 indexes. 

 Determining Seasonal Status

 Each year the seasonal status of every series is reevaluated based upon certain statistical criteria.
 Using these criteria, BLS economists determine whether a series should change its status: from "not
 seasonally adjusted" to "seasonally adjusted", or vice versa. If any of the 81 components of the U.S.
 city average all items index change their seasonal adjustment status from seasonally adjusted to not
 seasonally adjusted, not seasonally adjusted data will be used in the aggregation of the dependent
 series for the last five years, but the seasonally adjusted indexes before that period will not be
 changed. 28 of the 81 components of the U.S. city average all items index are not seasonally adjusted
 for 2016.

 Contact Information
 
 For additional information on seasonal adjustment in the CPI, please write to the Bureau of Labor
 Statistics, Division of Consumer Prices and Price Indexes, Washington, DC 20212 or contact Justin
 Yarros, Samuel An or Marie Rogers at (202) 691-6968 or by e-mail at Yarros.Justin@bls.gov,
 An.Samuel@bls.gov or Rogers.Marie@bls.gov. If you have general questions about the CPI, please call
 our information staff at (202) 691-7000.