Consumer Price Index August 1973
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the consumer price index LJSLJ for August 1973 U.S. DEPARTMENT OF LABOR Peter J. Brennan, Secretary CONTENTS BUREAU OF LABOR STATISTICS Julius Shiskin, Commissioner Page Price movements 1 OFFICE OF PRICES AND LIVING CONDITIONS Charts 1—4. Consumer price indexes for all items and major W. John Layng, Assistant Commissioner components, and rates of change over 1-, 3-, 6-, and 12-months spans 4 Table 1. CPI—United States city average for urban wage earners a monthly report and clerical workers, by commodity and service groups, on consumer price movements and expenditure classes 8 including statistical tables and technical notes. Table 2. CPI -United States city average for urban wage earners and clerical workers, by commodity and service groups, and expenditure classes 9 Table 3. CPI—United States and selected areas for urban wage earners and clerical workers, all items most recent index and percent changes from selected dates 10 Table 4. CPI—United States and selected areas for urban wage earners and clerical workers, major groups, percent change from July 1973 to August 1973 10 Table 5. CPI—United States and selected areas for urban wage earners and clerical workers, commodity groups, August 1973, and percent changes from May 1973 11 Table 6. CPI—United States and selected areas for urban wage earners and clerical workers, food and its subgroups, August 1973, and percent changes from July 1973 13 Table 7. CPI—United States city average for urban wage earners and clerical workers, food items, August 1973 indexes and percent changes from selected dates 14 Table 8. CPI—United States city average for urban wage earners and clerical workers, indexes for selected items and groups, August 1973, and percent changes from selected dates 16 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Price Movements August 1973 The Consumer Price Index rose 1.8 percent in August lected on August 7th, 8th, and 9th, and prices for other to 135.1 percent of its 1967 base. A substantial increase items were collected throughout the month. in food prices, primarily for meats, poultry, and eggs, accounted for about 80 percent of the rise in the CPI. Monthly change in detail (not seasonally adjusted) On a seasonally adjusted basis, the July-to-August in- crease in the CPI was 1.9 percent. In the 6-month per- The index for food purchased in grocery stores rose iod that ended in August, the CPI rose at a seasonally 7.4 percent; this index usually declines in August. Most adjusted annual rate of 10 percent; over the 12-month of the August increase was due to unusually sharp ad- period the rate of increase was 7.5 percent. vances in prices of poultry (45.8 percent), eggs (31.1 The August increase in the CPI was the sharpest percent), and pork (28.4 percent). Beef and veal prices 1-month rise since September 1947, mainly because of also increased sharply. Prices rose for bread, flour, milk, the record 6.1 percent rise in the food index. The non- and most other food items, except fresh fruits and veg- food commodities index increased 0.5 percent in August tables. Although the decline in fresh fruit prices was after seasonal adjustment, slightly above the average for more than usual for August, the decline in fresh vegetable recent months. The services index rose 0.7 percent, the prices was less. largest monthly rise in almost 3 years. Effective July 18—under the first step of Phase IV The price freeze, in effect since June 13, was ter- regulations covering food—retailers were allowed to in- minated for all foods except beef on July 18 and for crease prices on all food, except beef, to reflect price most other items on August 12. Food prices were col- increases for raw agricultural products since June 8. Table A. Percent changes in CPI and components, selected periods Changes in all items Changes from preceding month at seasonally adjusted compound annual rates Month Commodities Serv- All items Food less food ices From From From 3 months 6 months 12 months Unad- Seasonally Unad- Seasonally Unad- Seasonally Unad- ago ago ago justed adjusted justed adjusted justed adjusted justed 1972: August . 0.2 0.3 0.3 0.5 0.1 0.3 0.2 3.2 2.8 2.9 September .4 .4 .2 .7 .7 .3 .2 4.4 3.4 3.3 October . .3 .3 .1 .6 .4 0 .4 4.2 3.8 3.4 November .2 .3 .4 .7 .2 .2 .2 4.3 3.7 3.5 December .3 .2 .5 -.1 .1 .2 .4 3.4 3.9 3.4 1973: January .. .3 .5 2.1 2.1 -.5 .2 .2 4.0 4.1 3.7 February . .7 .7 1.9 1.9 .3 .3 .4 5.7 5.0 3.9 March . .9 .9 2.6 2.4 .5 .5 .3 8.6 5.9 4.7 April .7 .6 1.5 1.4 .7 .4 .3 9.2 6.6 5.1 May .6 .6 1.0 1.1 .6 .4 .4 8.7 7.2 5.5 June .7 .6 1.4 .9 .6 .5 .4 7.4 8.0 5.9 July .2 .2 .8 .5 -.2 .1 .2 5.7 7.4 5.7 August . 1.8 1.9 6.0 6.1 .2 .5 .7 11.4 10.0 7.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Retail price increases were limited to a dollar-for-dollar price freeze. Charges for housekeeping and home main- pass through of increased costs. In August, the whole- tenance services also increased. The index for residential sale price index for farm products and processed foods rents rose 0.6 percent, the largest monthly increase since and feeds climbed 17.6 percent. Prices of most agricul- February 1971. The index for medical care services tural products including livestock, poultry, and eggs rose continued to increase moderately, and the index for sharply. The largest increases occurred in grains and transportation services edged up only slightly. manufactured animal feeds. The index for food away from home—restaurant Diffusion of individual price changes meals and snacks—increased 1.1 percent in August. The index for nonfood commodities, which usually Approximately 117,000 individual prices were col- declines in August, rose 0.2 percent. Prices of apparel lected directly by the Bureau of Labor Statistics in rose instead of declining as they usually do in August. August for use in the index. Approximately 80 percent Higher prices, particularly for yearround items, were re- of these quotations (accounting for about 40 percent of ported as prices returned to regular or higher levels the weight of the CPI market basket) represent monthly following sales, or rose as a result of higher wholesale comparisons. Sixty-two percent of these monthly com- prices. Prices for houses, home maintenance and repair parisons showed no change, 29 percent showed an in- commodities, and fuel oil also increased. The effect of crease, and 9 percent a decrease, as can be seen from these increases was moderated by declines in prices of table B. The proportion of food prices increasing in August was considerably larger and the proportion show- new and used cars. The decline in new car prices was ingno change was smaller than in July. The August index smaller than usual for August, because concessions on also includes approximately 23,000 price comparisons small cars did not increase in August as a result of from periods before July, 18,000 of which cover the growing demand and short supply. quarterly span from May to August. About 20 percent of The index for consumer services rose 0.7 percent in these quarterly price comparisons increased, compared August. A rise in mortgage interest costs, primarily due with 17 percent in the April-to-July period. The pro- to increases in mortgage interest rates, accounted for portion of restaurant meal prices increasing was much more than half the rise in the service index. The increase larger in the May-to-August period than in the preceding in the mortgage interest rates index reflect higher rates 3-month period. In addition, about 4,700 rental units for conventional loans and the increase from 7.0 to 7.5 were surveyed in August, and 28 percent of these re- percent on VA-guaranteed loans announced in July. ported rent increases from February 1973, more than The residential telephone service index advanced 1.0 the proportion reporting increases for the 6-month per- percent as rates increased in several cities following the iod that ended in July. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Table B. Percent distribution of monthly price cc 1971 Item February March April May June July to to to to to to March April May June July August All items 2 100 100 100 100 100 100 Increases 15 14 13 15 18 16 Decreases 10 12 12 11 10 11 No change 75 74 75 74 72 73 Food at home 100 100 100 100 100 100 Increases 16 15 14 17 20 18 Decreases 12 13 13 12 11 13 No change 72 72 73 71 69 69 Commodities less food .... 100 100 100 100 100 100 Increases 10 7 8 6 8 8 Decreases 5 7 6 7 7 6 No change 85 86 86 87 85 86 Services 100 100 100 100 100 100 Increases 3 6 7 5 4 3 Decreases 1 4 5 3 3 3 No change 96 90 88 92 93 94 1972—Continued December 1973 1972 August September October November to January to to to to January to September October November December 1973 February All items 2 100 100 100 100 100 100 Increases 15 15 14 14 21 27 Decreases 10 11 11 9 10 9 No change 75 74 75 77 69 64 Food at home 100 100 100 100 100 100 Increases 16 17 16 31 Decreases 12 12 12 10 10 No change 72 71 72 73 69 59 Commodities less food ...