Consumer Price Index News Release

Transmission of material in this release is embargoed until                                        
8:30 a.m. (ET) Wednesday, December 11, 2024    USDL-24-2516
	
Technical information: (202) 691-7000  *  cpi_info@bls.gov  *  www.bls.gov/cpi
Media contact:         (202) 691-5902  *  PressOffice@bls.gov 

CONSUMER PRICE INDEX - NOVEMBER 2024

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent on a seasonally adjusted basis
in November, after rising 0.2 percent in each of the previous 4 months, the U.S. Bureau of Labor Statistics
reported today. Over the last 12 months, the all items index increased 2.7 percent before seasonal adjustment.

The index for shelter rose 0.3 percent in November, accounting for nearly forty percent of the monthly all
items increase. The food index also increased over the month, rising 0.4 percent as the food at home index
increased 0.5 percent and the food away from home index rose 0.3 percent. The energy index rose 0.2 percent
over the month, after being unchanged in October.

The index for all items less food and energy rose 0.3 percent in November, as it did in each of the previous 3
months. Indexes that increased in November include shelter, used cars and trucks, household furnishings and
operations, medical care, new vehicles, and recreation. The index for communication was among the few major
indexes that decreased over the month.

The all items index rose 2.7 percent for the 12 months ending November, after rising 2.6 percent over the 12
months ending October. The all items less food and energy index rose 3.3 percent over the last 12 months. The
energy index decreased 3.2 percent for the 12 months ending November. The food index increased 2.4 percent
over the last year. 

 
Food

The index for food increased 0.4 percent in November, after rising 0.2 percent in October. The food at home
index rose 0.5 percent over the month. Four of the six major grocery store food group indexes increased in
November. The index for meats, poultry, fish, and eggs rose 1.7 percent over the month, as the index for beef
increased 3.1 percent and the index for eggs rose 8.2 percent. The nonalcoholic beverages index increased 1.5
percent in November, after rising 0.4 percent in October. The index for other food at home rose 0.1 percent
over the month and the index for fruits and vegetables increased 0.2 percent.

The cereals and bakery products index fell 1.1 percent in November, the largest 1-month decrease ever reported
for the index which was first published in 1989. The index for dairy and related products declined 0.1 percent
over the month.

The food away from home index rose 0.3 percent in November, after rising 0.2 percent in October. The index for
full service meals also rose 0.3 percent over the month as did the index for limited service meals.

The food at home index rose 1.6 percent over the last 12 months. The index for meats, poultry, fish, and eggs
rose 3.8 percent over the last 12 months and the index for nonalcoholic beverages increased 2.8 percent. Over
the same period, the fruits and vegetables index rose 1.1 percent and the other food at home index increased
0.7 percent. The index for dairy and related products increased 1.2 percent over the year. In contrast, the
cereals and bakery products index declined 0.5 percent over the last year, the largest 12-month decline since
December 2017.

The food away from home index rose 3.6 percent over the last year. The index for limited service meals
increased 3.7 percent over the last 12 months and the index for full service meals rose 3.6 percent over the
same period. 

Energy

The energy index increased 0.2 percent in November, after being unchanged in October. The gasoline index
increased 0.6 percent over the month. (Before seasonal adjustment, gasoline prices decreased 2.9 percent in
November.) The natural gas index rose 1.0 percent over the month, after rising 0.3 percent in October. In
contrast, the index for electricity fell 0.4 percent in November.

The energy index decreased 3.2 percent over the past 12 months. The gasoline index fell 8.1 percent over this
12-month span and the fuel oil index fell 19.5 percent over that period. In contrast, the index for electricity
increased 3.1 percent over the last 12 months and the index for natural gas rose 1.8 percent. 

All items less food and energy

The index for all items less food and energy rose 0.3 percent in November, as it did in the preceding 3 months.
The shelter index increased 0.3 percent in November. The index for owners' equivalent rent rose 0.2 percent
over the month, as did the index for rent, the smallest 1-month increases since April 2021 and July 2021,
respectively. The lodging away from home index rose 3.2 percent in November, after rising 0.4 percent in
October. 

The medical care index increased 0.3 percent over the month, the same as it did in October. The index for
physicians' services increased 0.3 percent in November, while the prescription drugs index fell 0.4 percent
over the month. The hospital services index was unchanged in November.

The used cars and trucks index rose 2.0 percent in November, after rising 2.7 percent in the previous month.
The index for household furnishings and operations rose 0.6 percent over the month as did the index for new
vehicles. Other indexes that increased in November include recreation, education, personal care, and apparel.
In contrast, the index for communication fell 1.0 percent in November after falling 0.6 percent in October
and September.

The index for all items less food and energy rose 3.3 percent over the past 12 months. The shelter index
increased 4.7 percent over the last year, the smallest 12-month increase since February 2022. Other indexes
with notable increases over the last year include motor vehicle insurance (+12.7 percent), medical care (+3.1
percent), education (+4.2 percent), and recreation (+1.5 percent).

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 2.7 percent over the last 12 months to an
index level of 315.493 (1982-84=100). For the month, the index decreased 0.1 percent prior to seasonal
adjustment.  

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 2.6 percent over the
last 12 months to an index level of 308.998 (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 2.6 percent over the last 12
months. For the month, the index decreased 0.1 percent 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 December 2024 is scheduled to be released on Wednesday, January 15, 2025,
at 8:30 a.m. (ET).

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	Consumer Price Index End of Year Supplemental Files and Revised Seasonal Adjustment 
			Factors to be Available on February 12, 2025
			
Each year with the release of CPI data for January, relative importance weights are updated and seasonal
adjustment factors are recalculated to reflect price movements from the just-completed calendar year. This
routine annual recalculation may result in revisions to seasonally adjusted indexes for the previous 5 years.

Revised seasonal adjustment factors and additional end of year files will be released on February 12, 2025,
at 8:30 AM eastern time, in conjunction with the release of CPI data for January 2025. The following files 
will be available on the CPI supplemental files page, www.bls.gov/web/cpi.supp.toc.htm:

*	Consumer Price Index Seasonal Adjustment Factors (XLSX)
*	Consumer Price Index Relative Importance (XLSX)
*	Consumer Price Index Revised Seasonally Adjusted Indexes and Factors (XLSX)
*	CPI-U Median Price Change and Median Price Change Standard Errors (XLSX)
*	CPI-U Response Rates (XLSX)
*	Consumer Price Index Components for Seasonal Aggregation to All items (XLSX)
*	Consumer Price Index Series Subject to Intervention Analysis Seasonal Adjustment (XLSX)
*	CPI-U Historical Cost Weights (XLSX)
*	CPI-W Historical Cost Weights (XLSX)

With the release of these files, the seasonal factors and selected end of year materials will be available in
the API and FTP files. These files will be available for all U.S. city average CPI-U data and a subset of U.S.
city average CPI-W data.

In preparation for the upcoming end of year supplemental files and revised seasonal adjustment factors, last
year's end of year supplemental files and revised seasonal adjustment factors are now available on the CPI
supplemental files page. 

BLS posted last year's seasonal factors and other end of year materials in the API and FTP files on November 22, 2024.

For additional information, contact the CPI Information and Analysis section at cpi_info@bls.gov or
(202) 691-7000.
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		Consumer Price Index Publication Changes to be Implemented on February 12, 2025

With the publication of January 2025 data in February 2025, several indexes and average price series will be
discontinued, and one index title will change.

The following CPI indexes will continue to be published at the national level, but will be discontinued for
all metropolitan areas, census divisions, and regional size classes:

*	Electricity
*	Utility (piped) gas (often referred to as natural gas) 
*	Energy services
*	Fuels and utilities
*	Household energy

The following CPI average price series will continue to be published at the national level, but will be
discontinued for all metropolitan areas, census divisions, and regional size classes:

*	Electricity per KWH
*	Utility (piped) gas per therm

The following CPI index will have a title change:

*	Pet food will be changed to pet food and treats
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Technical Note

Brief Explanation of the CPI
The Consumer Price Index (CPI) measures the change in prices paid by consumers for goods and services.
The CPI reflects spending patterns for each of two population groups: all urban consumers and urban
wage earners and clerical workers. The all urban consumer group represents over 90 percent of the total
U.S. population. It is based on the expenditures of almost all residents of urban or metropolitan areas,
including professionals, the self-employed, the poor, the unemployed, and retired people, as well as
urban wage earners and clerical workers. Not included in the CPI are the spending patterns of people
living in rural nonmetropolitan areas, farming families, people in the Armed Forces, and those in
institutions, such as prisons and mental hospitals. Consumer inflation for all urban consumers is
measured by two indexes, namely, the Consumer Price Index for All Urban Consumers (CPI-U) and the
Chained Consumer Price Index for All Urban Consumers (C-CPI-U). The Consumer Price Index for Urban Wage
Earners and Clerical Workers (CPI-W) is based on the expenditures of households included in the CPI-U
definition that meet two requirements: more than one-half of the household's income must come from
clerical or wage occupations, and at least one of the household's earners must have been employed for
at least 37 weeks during the previous 12 months. The CPI-W population represents approximately 30
percent of the total U.S. population and is a subset of the CPI-U population.

The CPIs are based on prices of food, clothing, shelter, fuels, transportation, doctors' and dentists'
services, drugs, and other goods and services that people buy for day-to-day living. Prices are
collected each month in 75 urban areas across the country from about 6,000 housing units and
approximately 22,000 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 75 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 visit, telephone call, web, or app collection by the Bureau's
trained representatives.

In calculating the index, price changes for the various items in each location are aggregated using
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 23 selected 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. The CPI-U and CPI-W are
considered final when released, but the C-CPI-U is issued in preliminary form and subject to three
subsequent quarterly revisions.

The index measures price change from a designed reference date. For most of 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 7 percent from the reference base, for example, is shown as 107.000. Alternatively,
that relationship can also be expressed as the price of a base period market basket of goods and
services rising from $100 to $107. 

Sampling Error in the CPI

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 CPI. 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 percent of these
estimates will 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-U, 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 www.bls.gov/cpi/tables/variance-estimates/home.htm. 

Calculating Index Changes

Movements of the indexes from 1 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 following table shows an example of using index
values to calculate percent changes:

                            Item A                  Item B                      Item C
Year I                      112.500                 225.000                     110.000
Year II                     121.500                 243.000                     128.000
Change in index points      9.000                   18.000                      18.000
Percent change              9.0/112.500 x 100 = 8.0  18.0/225.000 x 100 = 8.0   18.0/110.000 x 100 = 16.4

Use of Seasonally Adjusted and Unadjusted Data

The Consumer Price Index (CPI) program 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 5 years of seasonally adjusted data. The factors are available at 
www.bls.gov/cpi/tables/seasonal-adjustment/seasonal-factors-2024.xlsx. For more information on data
revision scheduling, please see the Factsheet on Seasonal Adjustment at 
www.bls.gov/cpi/seasonal-adjustment/questions-and-answers.htm and the Timeline of Seasonal Adjustment
Methodological Changes at www.bls.gov/cpi/seasonal-adjustment/timeline-seasonal-adjustment-methodology-changes.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 weather events, 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 for five years.

Intervention Analysis

The Bureau of Labor Statistics uses intervention analysis seasonal adjustment (IASA) 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.

For example, this procedure was used for the motor fuel series to offset the effects of the 2009 return
to normal pricing after the worldwide economic downturn in 2008. Retaining this outlier data during 
seasonal factor calculation would distort the computation of the seasonal portion of the time series
data for motor fuel, so it was estimated and removed from the data prior to seasonal adjustment.
Following that, seasonal factors were calculated based on this "prior adjusted" data. These seasonal
factors represent a clearer picture of the seasonal pattern in the data. The last step is for motor
fuel seasonal factors to be applied to the unadjusted data.

For the seasonal factors introduced for January 2024, BLS adjusted 46 series using intervention
analysis seasonal adjustment, including selected food and beverage items, motor fuels and vehicles.

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 5 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 5 years of data.
Seasonally adjusted indexes beyond the last 5 years of data are considered to be final and not subject
to revision. For January 2024, revised seasonal factors and seasonally adjusted indexes for 2019 to
2023 were calculated and published. For series which are directly adjusted using the Census
X-13ARIMA-SEATS seasonal adjustment software, the seasonal factors for 2023 will be applied to data for
2024 to produce the seasonally adjusted 2024 indexes. Series which are indirectly seasonally adjusted
by summing seasonally adjusted component series have seasonal factors which are derived and are
therefore not available in advance.

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 5 years, but the seasonally adjusted indexes before that period will not be changed.
For 2024, 36 of the 81 components of the U.S. city average all items index are not seasonally adjusted.

Contact Information

For additional information about the CPI visit www.bls.gov/cpi or contact the CPI Information and
Analysis Section at 202-691-7000 or cpi_info@bls.gov. 

For additional information on seasonal adjustment in the CPI visit www.bls.gov/cpi/seasonal-adjustment/home.htm

If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access
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