Transmission of material in this release is embargoed until                                        
 8:30 a.m. (EST) December 15, 2016              USDL-16-2302

 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 2016

 The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent
 in November on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics
 reported today. Over the last 12 months, the all items index rose 1.7 percent
 before seasonal adjustment.

 The shelter and gasoline indexes continued to rise in November, and were again
 the main reasons for the seasonally adjusted all items increase. The shelter
 index advanced 0.3 percent in November, while the gasoline index increased
 2.7 percent. 

 The food index was unchanged in November, as the index for food at home fell
 0.1 percent, its seventh consecutive decline. The energy index increased
 1.2 percent, although gasoline was the only major energy component index to
 increase over the month.  

 The index for all items less food and energy rose 0.2 percent in November
 after rising 0.1 percent in October. The shelter index accounted for most of
 the increase, but the indexes for motor vehicle insurance, education,
 communication, and used cars and trucks also rose. The medical care index was
 unchanged over the month. Several indexes declined in November, including
 apparel, household furnishings and operations, airline fares, and new vehicles.  

 The all items index rose 1.7 percent for the 12 months ending November; the
 12-month all items increase has been rising since it was 0.8 percent in July.
 The index for all items less food and energy rose 2.1 percent for the 12 months
 ending November, and the energy index increased 1.1 percent. In contrast, the
 food index declined 0.4 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.
                              May   June  July  Aug.  Sep.  Oct.  Nov.   ended 
                              2016  2016  2016  2016  2016  2016  2016   Nov.  
                                                                         2016  
                                                                               
                                                                               
 All items..................    .2    .2    .0    .2    .3    .4    .2      1.7
  Food......................   -.2   -.1    .0    .0    .0    .0    .0      -.4
   Food at home.............   -.5   -.3   -.2   -.2   -.1   -.2   -.1     -2.2
   Food away from home (1)..    .2    .2    .2    .2    .2    .1    .1      2.3
  Energy....................   1.2   1.3  -1.6    .0   2.9   3.5   1.2      1.1
   Energy commodities.......   2.4   3.3  -4.4   -.9   5.5   6.7   2.5       .8
    Gasoline (all types)....   2.3   3.3  -4.7   -.9   5.8   7.0   2.7      1.0
    Fuel oil (1)............   6.2   3.3  -1.3  -2.5   2.4   5.9  -1.2     -2.0
   Energy services..........    .2   -.5   1.0    .8    .7    .5   -.1      1.5
    Electricity.............   -.2   -.5    .5    .5    .7    .4    .0       .2
    Utility (piped) gas                                                        
       service..............   1.7   -.4   3.1   2.1    .8    .9   -.4      6.2
  All items less food and                                                      
     energy.................    .2    .2    .1    .3    .1    .1    .2      2.1
   Commodities less food and                                                   
      energy commodities....   -.2   -.3   -.1    .1   -.1    .1   -.3      -.7
    New vehicles............   -.1   -.2    .2    .0   -.1    .2   -.1       .2
    Used cars and trucks....  -1.3  -1.1  -1.0   -.6   -.3   -.1    .3     -3.8
    Apparel.................    .8   -.4    .0    .2   -.7    .3   -.5       .3
    Medical care commodities   -.4    .8    .5   1.4    .6    .1   -.5      4.3
   Services less energy                                                        
      services..............    .3    .3    .2    .3    .2    .2    .3      3.0
    Shelter.................    .4    .3    .2    .3    .4    .4    .3      3.6
    Transportation services     .3    .3   -.2    .1    .0   -.2    .4      2.5
    Medical care services...    .5    .2    .5   1.0    .0    .0    .2      3.9

   1 Not seasonally adjusted.


 Food

 The food index was unchanged in November for the fifth consecutive month. The food
 at home index fell 0.1 percent, while the index for food away from home increased
 0.1 percent. Major grocery store food group indexes were mixed in November, with
 four declines and two increases. The index for dairy and related products fell
 0.6 percent in November after rising in September and October. The fruits and
 vegetables index fell 0.2 percent after rising 0.2 percent the prior month. The index
 for other food at home fell 0.3 percent, and the index for meats, poultry, fish, and
 eggs continued to fall, declining 0.1 percent.

 The index for nonalcoholic beverages increased in November, rising 0.3 percent after
 declining in five of the last six months. The index for cereals and bakery products
 also rose, increasing 0.1 percent. 

 The food at home index declined 2.2 percent over the past year, with all six of the
 major grocery store food group indexes falling. The index for meats, poultry, fish,
 and eggs posted the largest decline over the span, decreasing 6.0 percent. The index
 for food away from home, in contrast, rose 2.3 percent over the past 12 months.    


 Energy

 The energy index rose in November, increasing 1.2 percent after a 3.5 percent rise in
 October. The gasoline index, which rose 7.0 percent in October, increased 2.7 percent
 in November. (Before seasonal adjustment, gasoline prices decreased 2.4 percent in
 November.) The electricity index was unchanged in November after rising in each of the
 4 previous months. The index for natural gas, which had also increased 4 months in a
 row, fell 0.4 percent in November.  

 The energy index rose 1.1 percent over the past year, the largest 12-month increase
 since July 2014.   The gasoline index rose 1.0 percent over the last year. The index
 for natural gas rose more sharply, increasing 6.2 percent, while the electricity index
 increased slightly, advancing 0.2 percent. 


 All items less food and energy

 The index for all items less food and energy increased 0.2 percent in November after
 increasing 0.1 percent in September and October. The shelter index increased 0.3 percent
 in November, with the indexes for rent and owners' equivalent rent both increasing
 0.3 percent. The index for motor vehicle insurance continued to rise, increasing
 1.0 percent in November. The index for education increased 0.2 percent, as did the index
 for communication. The index for used cars and trucks rose 0.3 percent in November, the
 first increase since February, and the recreation index rose 0.1 percent. 

 The index for medical care was unchanged in November. The physicians' services index rose
 0.6 percent, while the index for prescription drugs fell 0.6 percent and the hospital
 services index declined 0.1 percent. The apparel index fell 0.5 percent in November after
 rising in October, and the index for household furnishings and operations declined
 0.3 percent. The index for airline fares fell 1.3 percent in November after a 2.2 percent
 decline in October, and the index for new vehicles fell 0.1 percent.

 The index for all items less food and energy increased 2.1 percent over the past 12 months.
 Indexes that rose faster over the last year included motor vehicle insurance (6.7 percent),
 medical care (4.0 percent), and shelter (3.6 percent). Among the indexes that rose more
 slowly were recreation (0.8 percent), apparel (0.3 percent), and new vehicles (0.2 percent).
 Indexes that declined included airline fare (-6.6 percent), used cars and trucks
 (-3.8 percent), and household furnishings and operations (-1.0 percent). 


 Not seasonally adjusted CPI measures

 The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.7 percent over the 
 last 12 months to an index level of 241.353 (1982-84=100). For the month, the index
 decreased 0.2 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 235.215 (1982-84=100). For the
 month, the index decreased 0.2 percent prior to seasonal adjustment.  

 The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 1.5 percent
 over the last 12 months. For the month, the index fell 0.2 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 2016 is scheduled to be released on Wednesday,
 January 18, 2017, at 8:30 a.m. (EST). 


 ----------------------------------------------------------------------------------------
                    Consumer Price Index Geographic Revision for 2018

 In January 2018, BLS will introduce a new geographic area sample for the Consumer Price
 Index (CPI). The 2018 revision utilizes the 2010 Decennial Census and incorporates an
 updated area sample design, changes the frequency of publication for several local area
 indexes, and establishes some new local area and aggregate indexes. The first indexes
 using the new structure will be published in February 2018. Additional information on
 the geographic revision is available at: www.bls.gov/cpi/georevision2018.htm.
 ----------------------------------------------------------------------------------------







 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 contact us at (202) 691-6968
 or cpiseas@bls.gov. If you have general questions about the CPI, please contact our information
 staff at (202) 691-7000 or cpi_info@bls.gov.