U.S. Consumer Price Index: 2017 in review

January 19, 2018

From December 2016 to December 2017,  the Consumer Price Index for All Urban Consumers (CPI-U) rose 2.1%. This is a similar rise when compare to 2015 December to 2016 December. The food index increased 1.6% 2016-2017 after declining by 0.2% the previous year. The index for food at home followed a similar trend albeit at a lower level, rising in 2016-2017 at 0.9% after a decline the previous year (2015-2016).

 A breakdown of the index into sub- category revealed that for the 2016-2017 period, meat, poultry, fish, and eggs increased 2.8%, after declining over the same period in 2015-2016 period. The sub-index for fruits and vegetables rose  1.5%, this after a decline of 2.4% over the previous period. The index for cereals and bakery products fell 0.6 per cent from December 2016 to December 2017, similar to a 0.7-percent decline over the same period the previous year. The index for dairy and related products fell 0.5 per cent from December 2016 to December 2017.

 The energy index rose 6.9% (2016-2017), after an increase of 5.4% over the previous period. The index for gasoline rose 10.7%(2016-2017) following a previous year increase of 9.1%. Notably, the index for natural gas increased for the second straight year, rising 4.7%, following an increase of 7.8% from December 2016 to December 2017. Over the year ending December 2017, the electricity index increased 2.6% after rising 0.7% over the same period the previous year.

According to the U.S. Bureau of Labor Statistics, “The medical care index increased 1.8 percent from December 2016 to December 2017, a substantial deceleration from its 4.1-percent increase over the same period a year earlier. From December 2016 to December 2017, the index for prescription drugs rose 2.8 percent, hospital services rose 5.1 percent, and the physicians’ services index declined 1.8 per cent.”

 See chart below:

 12 month percentage change in Consumer Price Index for all Urban

                                                         Consumers, selected item not seasonally adjusted

 

 

                    Source Bureau of Labour Statistics

                                 

 

 

 

 

 

2018-01-19T17:25:26-05:00