Transmission of material in this release is embargoed until
 8:30 a.m. (EDT) Tuesday, September 17, 2013 USDL-13-1884
 
 Technical information: (202) 691-7000 Reed.Steve@bls.gov www.bls.gov/cpi
 Media Contact:         (202) 691-5902 PressOffice@bls.gov
 
                  Consumer Price Index - August 2013

 The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1
 percent in August on a seasonally adjusted basis, the U.S. Bureau of
 Labor Statistics reported today. Over the last 12 months, the all
 items index increased 1.5 percent before seasonal adjustment.

 Increases in the indexes for shelter and medical care contributed to
 the increase in the seasonally adjusted all items index; they also
 accounted for most of the 0.1 percent increase in the index for all
 items less food and energy. Within all items less food and energy, the
 indexes for personal care, tobacco, and apparel rose as well, while
 the indexes for airline fares, household furnishings and operations,
 and used cars and trucks declined.

 The food index rose slightly in August, with the fruits and vegetable
 index rising 1.2 percent and four of the six major grocery store group
 indexes increasing. The energy index declined 0.3 percent, due mostly
 to a sharp decline in the index for natural gas. The gasoline and
 electricity indexes also declined slightly, while the index for fuel
 oil rose.

 The all items index increased 1.5 percent over the last 12 months. The
 index for all items less food and energy has risen 1.8 percent over
 the last year; the 12-month change has remained in the range of 1.6
 percent to 2.3 percent since June of 2011. The food index rose 1.4
 percent over the last 12 months, a figure that has held steady since
 May. The energy index declined 0.1 percent over the last 12 months.



 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.
                              Feb.  Mar.  Apr.  May   June  July  Aug.   ended 
                              2013  2013  2013  2013  2013  2013  2013   Aug.  
                                                                         2013  
                                                                               
                                                                               
 All items..................    .7   -.2   -.4    .1    .5    .2    .1      1.5
  Food......................    .1    .0    .2   -.1    .2    .1    .1      1.4
   Food at home.............    .1   -.1    .1   -.3    .2    .1    .1      1.0
   Food away from home (1)..    .1    .2    .3    .2    .2    .2    .2      2.0
  Energy....................   5.4  -2.6  -4.3    .4   3.4    .2   -.3      -.1
   Energy commodities.......   8.6  -4.1  -7.9   -.1   5.7   1.0    .0     -2.2
    Gasoline (all types)....   9.1  -4.4  -8.1    .0   6.3   1.0   -.1     -2.4
    Fuel oil (1)............   3.1  -2.1  -4.4  -2.9   -.5   1.1   1.2       .0
   Energy services..........    .5   -.2   1.4   1.2    .1  -1.0   -.7      3.2
    Electricity.............    .3   -.6    .5    .8    .2   -.3   -.1      2.8
    Utility (piped) gas                                                        
       service..............   1.2   1.0   4.4   2.4   -.4  -2.8  -2.3      4.8
  All items less food and                                                      
     energy.................    .2    .1    .1    .2    .2    .2    .1      1.8
   Commodities less food and                                                   
      energy commodities....    .0   -.1    .0    .0    .2    .0    .0       .0
    New vehicles............   -.3    .1    .3    .0    .3    .1    .0      1.1
    Used cars and trucks....    .8   1.2    .6   -.1   -.4   -.4   -.1     -1.0
    Apparel.................   -.1  -1.0   -.3    .2    .9    .6    .1      1.8
    Medical care commodities   -.4    .1    .1   -.5    .5    .4    .4       .0
   Services less energy                                                        
      services..............    .2    .2    .1    .2    .2    .2    .2      2.4
    Shelter.................    .2    .2    .2    .3    .2    .2    .2      2.4
    Transportation services     .1    .2   -.2    .4   -.1    .4   -.5      2.5
    Medical care services...    .3    .3   -.1    .0    .4    .1    .7      3.1

   1 Not seasonally adjusted.










 Consumer Price Index Data for August 2013

 Food
 The food index increased 0.1 percent in August, the same increase as
 in July. The food at home index also rose 0.1 percent for the second
 straight month. The index for fruits and vegetables continued to rise,
 increasing 1.2 percent after a 1.5 percent advance in July. The index
 for meats, poultry, fish, and eggs rose for the third month in a row,
 increasing 0.6 percent. The index for dairy and related products
 turned up in August, increasing 0.4 percent after declining in each of
 the three previous months, and the index for cereals and bakery
 products rose 0.3 percent in August after declining 0.3 percent in
 July. In contrast to these increases, the index for other food at home
 fell 1.0 percent in August, its largest decline since 2002. The index
 for nonalcoholic beverages also declined in August, falling 0.1
 percent. The food at home index has risen 1.0 percent over the last 12
 months. Four of the six major grocery store food group indexes rose
 over the span, with the fruits and vegetables index posting the
 largest increase at 3.6 percent. The index for food away from home
 rose 0.2 percent in August and has increased 2.0 percent over the past
 year.

 Energy

 The energy index declined 0.3 percent in August after rising 0.2
 percent in July. The gasoline index, which increased in June and July,
 declined 0.1 percent in August. (Before seasonal adjustment, gasoline
 prices fell 0.5 percent in August.) The electricity index also
 decreased 0.1 percent in August, its second decline in a row. The
 index for natural gas fell as well, declining 2.3 percent after a 2.8
 percent decrease in July. Fuel oil was the only major energy component
 index to increase in August; it rose 1.2 percent after a 1.1 percent
 increase in July. Major energy components are mixed over the last 12
 months. Despite the recent declines, the index for natural gas has
 increased 4.8 percent over the past year, while the electricity index
 has increased 2.8 percent. However, the gasoline index has declined
 2.4 percent over the span, while the index for fuel oil is unchanged.

 All items less food and energy

 The index for all items less food and energy increased 0.1 percent in
 August after increasing 0.2 percent in each of the three previous
 months. The shelter index increased 0.2 percent, the same increase as
 in June and July, with the rent index increasing 0.4 percent and the
 index for owners' equivalent rent rising 0.2 percent, but the index
 for lodging away from home falling 0.7 percent. The index for medical
 care increased 0.6 percent in August. The medical care services index
 rose 0.7 percent with the index for hospital services increasing 1.9
 percent. The medical care commodities index rose 0.4 percent. Also
 rising in August were the indexes for personal care, which rose 0.3
 percent, tobacco, which advanced 0.4 percent, and apparel, which
 increased 0.1 percent. The new vehicles index, which rose in June and
 July, was unchanged in August, while the recreation index was
 unchanged for the second straight month. The index for airline fares
 declined sharply in August, falling 3.1 percent. This was the third
 consecutive decline for the index, but it has still risen 1.5 percent
 over the past 12 months. The indexes for used cars and trucks and
 household furnishings and operations both declined slightly in August,
 falling 0.1 percent.

 The index for all items less food and energy increased 1.8 percent for
 the 12 months ending August. The medical care index rose 2.3 percent
 over that span, with the index for medical care services up 3.1
 percent and the medical care commodities index unchanged. The shelter
 index increased 2.4 percent, and the index for new vehicles rose 1.1
 percent.

 Not seasonally adjusted CPI measures

 The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.5
 percent over the last 12 months to an index level of 233.877 (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 1.5 percent over the last 12 months to an index
 level of 230.359  (1982-84=100). For the month, the index increased
 0.1 percent prior to seasonal adjustment.

 The Chained Consumer Price Index for All Urban Consumers (C-CPI-U)
 increased 1.4 percent over the last 12 months. For the month, the
 index increased 0.1 percent on a not seasonally adjusted basis. Please
 note that the indexes for the post-2011 period are subject to
 revision.


 The Consumer Price Index for September 2013 is scheduled to be
 released on Wednesday, October 16, 2013, at 8:30 a.m. (EDT).











 Discontinuation of Department Store Inventory Indexes

 The Bureau of Labor Statistics will discontinue publication of its
 Department Store Inventory indexes after the release of the December
 2013 CPI in mid-January 2014, and these values will no longer be
 uploaded to the Labstat database. For further information please
 contact Sharon Gibson at 202-691-6968 or gibson.sharon@bls.gov.

 Chained Consumer Price Index for All Urban Consumers (C-CPI-U) Annual
 Average Indexes Discontinued

 The final revisions of the C-CPI-U indexes for 2012 will be available
 in February 2014.  Annual average indexes for C-CPI-U series will not
 be published for time periods after 2012. (Monthly C-CPI-U indexes
 will continue to be published.)   In February 2014, the annual average
 indexes for the final estimates for 2012 C-CPI-U series will be
 published in the public CPI database.  Table 1CA will not be
 published.

 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 29 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 cover approximately 88 percent of the total
 population and include 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, and 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 4,000 housing units and approximately 26,000 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
 http://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 2012".  These data are available on the CPI home page
 (http://www.bls.gov/cpi), or by using the following link:
 http://www.bls.gov/cpi/cpivar2012.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
 Equals percent change
 0.3



 A Note on Seasonally Adjusted and Unadjusted Data
  
 Because price data are used for different purposes by different
 groups, the Bureau of Labor Statistics publishes seasonally adjusted
 as well as unadjusted changes each month.
 
 For analyzing general 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.

 The unadjusted data are of primary interest to consumers concerned
 about the prices they actually pay.  Unadjusted data also are 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.

 Seasonal factors used in computing the seasonally adjusted indexes are
 derived by the X-12-ARIMA Seasonal Adjustment Method.  Seasonally
 adjusted indexes and seasonal factors are computed annually.  Each
 year, the last 5 years of seasonally adjusted data are revised.  Data
 from January 2008 through December 2012 were replaced in January 2013.
 Exceptions to the usual revision schedule were: the updated seasonal
 data at the end of 1977 replaced data from 1967 through 1977; and, in
 January 2002, dependently seasonally adjusted series were revised for
 January 1987-December 2001 as a result of a change in the aggregation
 weights for dependently adjusted series. For further information,
 please see "Aggregation of Dependently Adjusted Seasonally Adjusted
 Series," in the October 2001 issue of the CPI Detailed Report.

 Effective with the publication of data from January 2006 through
 December 2010 in January 2011, the Video and audio series and the
 Information technology, hardware and services series were changed from
 independently adjusted to dependently adjusted.  This resulted in an
 increase in the number of seasonal components used in deriving
 seasonal movement of the All items and 54 other lower level
 aggregations, from 73 for the publication of January 1998 through
 December 2005 data to 82 for the publication of seasonally adjusted
 data for January 2006 and later.  Each year the seasonal status of
 every series is reevaluated based upon certain statistical criteria.
 If any of the 82 components 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 5 years, but the seasonally adjusted indexes before that
 period will not be changed.  Note: 37 of the 82 components are not
 seasonally adjusted for 2013.

 Seasonally adjusted data, including the all items index levels, are
 subject to revision for up to five years after their original release.
 For this reason, BLS advises against the use of these data in
 escalation agreements.

 Effective with the calculation of the seasonal factors for 1990, the
 Bureau of Labor Statistics has used an enhanced seasonal adjustment
 procedure called Intervention Analysis Seasonal Adjustment for some
 CPI series.  Intervention Analysis Seasonal Adjustment allows for
 better estimates of seasonally adjusted data.  Extreme values and/or
 sharp movements which might distort the seasonal pattern are estimated
 and removed from the data prior to calculation of seasonal factors.
 Beginning with the calculation of seasonal factors for 1996, X-12-
 ARIMA software was used for Intervention Analysis Seasonal Adjustment.

 For the seasonal factors introduced in January 2013, BLS adjusted 31
 series using Intervention Analysis Seasonal Adjustment, including
 selected food and beverage items, motor fuels, electricity and
 vehicles.  For example, this procedure was used for the Motor fuel
 series to offset the effects of events such as damage to oil
 refineries from Hurricane Katrina.

 For a complete list of Intervention Analysis Seasonal Adjustment
 series and explanations, please refer to the article "Intervention
 Analysis Seasonal Adjustment", located on our website at
 http://www.bls.gov/cpi/cpisapage.htm.

 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 Chris Graci at
 (202) 691-5826, or by e-mail at graci.christopher@bls.gov or contact
 Carlyle Jackson at (202) 691-6984, or by e-mail at
 jackson.carlyle@bls.gov .  If you have general questions about the
 CPI, please call our information staff at (202) 691-7000.