Transmission of material in this release is embargoed until
 8:30 a.m. (EST) Thursday, November 15, 2012   USDL-12-2259
 
 
 Technical information: (202) 691-7000    Reed.Steve@bls.gov www.bls.gov/cpi
 Media Contact:         (202) 691-5902    PressOffice@bls.gov
 
                  Consumer Price Index - October 2012

 The Consumer Price Index for All Urban Consumers (CPI-U) increased
 0.1 percent in October on a seasonally adjusted basis, the U.S.
 Bureau of Labor Statistics reported today. Over the last 12 months,
 the all items index increased 2.2 percent before seasonal adjustment.
 
 The shelter index increased 0.3 percent, its largest increase since
 March 2008, and accounted for over half of the seasonally adjusted
 all items increase. The index for all items less food and energy rose
 0.2 percent, as the rise in the shelter index and increases in the
 indexes for apparel and airline fare more than offset declines in the
 indexes for used cars and trucks, new vehicles, and recreation.
 
 The food index increased 0.2 percent in October with the index for
 food at home rising 0.3 percent, its largest increase since September
 2011. The energy index, which had risen sharply in August and
 September, declined slightly in October. Major energy component
 indexes were mixed, with declines in the indexes for gasoline and
 natural gas more than offsetting increases in the indexes for
 electricity and fuel oil.
 
 The 12-month change in the index for all items was 2.2 percent in
 October, an increase from the September figure of 2.0 percent. The 12-
 month change in the index for all items less food and energy remained
 at 2.0 percent. The food index rose 1.7 percent over the last 12
 months, and the energy index increased 4.0 percent.


 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.
                              Apr.  May   June  July  Aug.  Sep.  Oct.   ended 
                              2012  2012  2012  2012  2012  2012  2012   Oct.  
                                                                         2012  
                                                                                                                                                              
 All items..................    .0   -.3    .0    .0    .6    .6    .1      2.2
  Food......................    .2    .0    .2    .1    .2    .1    .2      1.7
   Food at home.............    .2   -.1    .1    .0    .1    .0    .3      1.0
   Food away from home (1)..    .3    .2    .2    .2    .3    .2    .1      2.7
  Energy....................  -1.7  -4.3  -1.4   -.3   5.6   4.5   -.2      4.0
   Energy commodities.......  -2.6  -6.4  -2.3    .2   8.6   6.7   -.5      8.6
    Gasoline (all types)....  -2.6  -6.8  -2.0    .3   9.0   7.0   -.6      9.1
    Fuel oil (1)............  -1.1  -2.8  -7.9   -.5   4.6   4.1   1.1      5.6
   Energy services..........   -.2   -.7    .0  -1.1    .8    .7    .3     -3.0
    Electricity.............    .2    .3   -.5  -1.3    .2    .2    .5     -1.2
    Utility (piped) gas                                                        
       service..............  -1.8  -4.1   1.7   -.2   2.8   2.0   -.2     -8.4
  All items less food and                                                      
     energy.................    .2    .2    .2    .1    .1    .1    .2      2.0
   Commodities less food and                                                   
      energy commodities....    .2    .2    .2    .0   -.2   -.2   -.1       .7
    New vehicles............    .4    .2    .2   -.1    .2   -.1   -.1      1.0
    Used cars and trucks....   1.5   1.0    .0   -.5   -.9  -1.4   -.9     -2.1
    Apparel.................    .4    .4    .5    .2   -.5    .3    .7      3.0
    Medical care commodities                                                   
       (1)..................    .0    .0    .1    .5    .3   -.1    .0      3.0
   Services less energy                                                        
      services..............    .3    .2    .2    .1    .1    .3    .3      2.5
    Shelter.................    .2    .2    .1    .1    .2    .2    .3      2.3
    Transportation services     .5    .3   -.2   -.2    .0    .5    .7      2.0
    Medical care services...    .4    .5    .7    .3    .2    .4    .0      3.9

   1 Not seasonally adjusted.











 Consumer Price Index Data for October 2012

 Food

 The food index rose 0.2 percent in October after a 0.1 percent
 increase in September. The index for food at home, which was unchanged
 in September, rose 0.3 percent in October. Four of the six major
 grocery store food groups posted increases of at least 0.4 percent.
 The index for dairy and related products rose 0.8 percent in October.
 This was its third straight increase but it still has declined 1.1
 percent over the last 12 months. The index for meats, poultry, fish,
 and eggs also rose 0.8 percent, while the fruits and vegetables index
 rose 0.6 percent and the index for cereals and bakery products
 increased 0.4 percent; all three indexes declined in September. In
 contrast, the index for nonalcoholic beverages declined 0.3 percent
 and the index for other food at home fell 0.1 percent. The food at
 home index has risen 1.0 percent over the last 12 months. The index
 for food away from home increased 0.1 percent in October, its smallest
 increase since February, and has risen 2.7 percent over the last 12
 months.


 Energy

 The energy index, which rose sharply in August and September, declined
 0.2 percent in October. The gasoline index, which had risen 16.6
 percent from July to September, declined 0.6 percent in October.
 (Before seasonal adjustment, gasoline prices decreased 2.1 percent in
 October.) The index for natural gas also declined after increasing in
 previous months, falling 0.2 percent. In contrast, the index for
 electricity rose 0.5 percent in October, its largest increase since
 September 2011. The index for fuel oil also rose in October,
 increasing 1.1 percent. The indexes for gasoline and fuel oil have
 increased over the last 12 months, rising 9.1 percent and 5.6 percent,
 respectively. The electricity and natural gas indexes have declined,
 with the former falling 1.2 percent and the latter decreasing 8.4
 percent.


 All items less food and energy

 The index for all items less food and energy increased 0.2 percent in
 October after increasing 0.1 percent in each of the three previous
 months. The shelter index rose 0.3 percent as the rent index increased
 0.4 percent, its largest rise since June 2008. The index for owners'
 equivalent rent increased 0.2 percent, and the index for lodging away
 from home advanced 0.5 percent. The apparel index increased 0.7
 percent in October after a 0.3 percent increase in September. The
 index for airline fares rose for the second straight month, increasing
 2.4 percent in October. The index for medical care was unchanged in
 October; this was the first time since July 2010 the index failed to
 rise. The index for used cars and trucks fell 0.9 percent, its fourth
 straight decrease. Several indexes posted slight declines in October;
 the indexes for new vehicles, recreation, household furnishings and
 operations, and tobacco all fell 0.1 percent.

 The index for all items less food and energy has risen 2.0 percent
 over the last 12 months. Indexes that have been rising more quickly
 include medical care (3.7 percent), apparel (3.0 percent) and shelter
 (2.3 percent). Among those rising more slowly or declining are the
 indexes for new vehicles (1.0 percent), airline fares (-0.5 percent)
 and used cars and trucks (-2.1 percent).





 Not seasonally adjusted CPI measures

 The Consumer Price Index for All Urban Consumers (CPI-U) increased 2.2
 percent over the last 12 months to an index level of 231.317 (1982-
 84=100). For the month, the index was unchanged prior to seasonal
 adjustment.

 The Consumer Price Index for Urban Wage Earners and Clerical Workers
 (CPI-W) increased 2.2 percent over the last 12 months to an index
 level of 227.974  (1982-84=100). For the month, the index decreased
 0.1 percent prior to seasonal adjustment.

 The Chained Consumer Price Index for All Urban Consumers (C-CPI-U)
 increased 1.9 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 post-2010 period are subject to revision.


 The Consumer Price Index for November 2012 is scheduled to be released
 on Friday, December 14, 2012, at 8:30 a.m. (EST).


 ______________________________________________________________________
                               HURRICANE SANDY
 
 Hurricane Sandy had virtually no impact on data collection efforts or
 survey response rates for October.
 ______________________________________________________________________
























 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 0.03 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 0.06 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 0.14 and 0.26 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 2011".  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/cpivar2011.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








 Regions Defined

 The states in the four regions are listed below.

 The Northeast--Connecticut, Maine, Massachusetts, New Hampshire, New
 York, New Jersey, Pennsylvania, Rhode Island, and Vermont.
 The Midwest--Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota,
 Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
 The South--Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky,
 Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South
 Carolina, Tennessee, Texas, Virginia, West Virginia, and the District
 of Columbia.
 The West--Alaska, Arizona, California, Colorado, Hawaii, Idaho,
 Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.


 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 2007 through December 2011 were replaced in January 2012.
 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: 38 of the 82 components are not
 seasonally adjusted for 2012.

 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 2012, 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 David Levin at
 (202) 691-6968, or by e-mail at Levin.David@bls.gov.  If you have
 general questions about the CPI, please call our information staff at
 (202) 691-7000.