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May 2006

Consumer prices rose 3.4 percent in 2005, about the same as last year

Todd L. Wilson

Larger price increases for household fuels, telephone services, and airline fares were largely offset by smaller increases in the indexes for motor fuel, motor vehicle insurance, and new and used motor vehicles. The Consumer Price Index for All Urban Consumers (CPI-U) for All Items for the U.S. city average increased 3.4 percent in 2005, compared with a 3.3-percent rise during 2004. The CPI-U excluding food and energy prices increased 2.2 percent in 2005, the same rate as during the prior year. Energy inflation was about the same in 2005 as it was during 2004, while food inflation was slightly lower in 2005.

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