U.S. DEPARTMENT OF LABOR Bureau of Labor Statistics Washington 25, D C. CONSUMER PRICE INDEX FOR JANUARY i960
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1 Released February 25, i960 U.S. DEPARTMENT OF LABOR Bureau of Labor Statistics Washington 25, D C. CONSUMER PRICE INDEX FOR JANUARY i960 The Consumer Price for i960 edged off 0.1 percent for the second successive month, to Its lowest level since last September. The index, at 125.h percent of the 19^7-^9 average, was 1-3 percent above the figure a slightly smaller over-the-year gain than in the past several months. Major influences in the -to- downtrend were lower prices for apparel (principally for women and girls), new cars, and for food bought for home usechiefly eggs and almost all meats. The -to- price decrease for apparel was the sharpest for the season in about a decade. Price declines were partly offset by increases for most of the commodities and services associated with housing. Services as a group also continued to rise, moved in mainly by those services associated with shelter for example, property tax.es and home upkeep. Compared with a year ago, the Consumer Price reflected the same counterbalancing tendencies it has shown in most recent months, with over-theyear decreases in prices for food (at home) not quite offsetting gains for most other goods and services. The cost of shelter, housing upkeep, and various other services contributed most to the over-the-year increase. COST OF IIYING ADJt;ST*y?TT3 - The pay envelopes of a little more than 1 million workers, ilgsi!y in tae manufacture automobiles and related products, are tied to the 196: Consumer Price The automobile workers will have no adjustment in pay on trie oasis of trie JtJi^vj :, The wages of a relatively few workers (about 60,000), iii aircraft and fann mac 11 iery. will be reduced, in most cases by a cent an hour. A few vc r.kers, principally x:, tne trucking industry for whom adjustments are made on a zecaxan ive L bas:& vi 1 reeev^t a cent-an-hour raise, APPAREL - The larger than usual decrease in apparel reflects substantial price cuts in end-of-season sales, particularly for women 1 s and girls' outerwear. All types of women's and girls f coats^ and women's suits were offered at sharply lower prices. Reductions were reported also for women's wool dresses., girls' wool skirts, men's topcoats and suits, and. men! s and boys' jackets. Indications are that chiefly because of mild weather in many parts of the country, the clothing business, although good, was slower this fall and winter than had been anticipated, leaving heavy year-end inventories. Although apparel prices were 1.4 percent below their peak of and November > they were at record levels for percent above the previous high of TRANSPORTATION - The 1.4-percent decline in new car prices in was not unusual for the period, and reflects about the same increase in dealers' concessions this year as last. Gasoline prices also declined, as they frequently do in.
2 2 Prices of used cars remained und from to. Older model cars (1955 and earlier makes) held up better in price than more recent models, some of which may be competing in the market with the new compact cars. FOOD - Food prices declined for the fourth successive month in. They have been below year-earlier levels since February.> reflecting primarily lower prices for meat, because of heavier marketings of meat animals. The - decrease of 0 percent in food prices was the first for the period in 3 years. All of the i960 reduction was in food for home use, since restaurant meals, which reflect service as well as materials and overhead costs, continued their almost uninterrupted rise of the past years. Lower prices for eggs, and for virtually all cuts of meat (but particularly pork) contributed most to the - downtrend in food prices. Egg prices have been responding to seasonal increases in production. The large volume of hog slaughtering, which continued above a year parlier, and close to postwar peak levels, accounted for the declining price of pork and pork products. Beef and lamb also were lower in price because of especially good supplies. Prices for poultry rose over the month, as marketings reflected previous decreases in the number of young chickens raised. Prices for fresh fruits and vegetables increased as is usual in. However, gains were especially sharp for tomatoes; adverse weather in late reduced normally light Florida supplies, and California and Mexico supplies commanded higher prices. Potato prices also were up substantially because of relatively low storage stocks. Prices for frozen and canned fruits continued to decline in, again chiefly because of heavy production and record stocks of frozen and canned orange juice. HOUSING - Almost all elements of housing costs rose in, when the housing component of the Consumer Price reached an. alltime high. The main thrust was from continuing increases in property taxes, which have been both substantial and widespread, imposed in many cases to pay for new community facilities. In addition, prices were higher for home repairs and maintenance, fuel, appliances, furniture and floor coverings, and for household operation services, such as telephone, laundry 9 and dry cleaning. Rent edged up again also. Only household textiles declined noticeably in price, because of the white sales and other clearance and promotional sales. OTHER COMMODITIES AND SERVICES - The cost of medical care in continued its steady uptrend of the past decade, with increases reported in hospital rates, hospitalization insurance, and physicians' fees. Prices decreased for personal-care commodities and services, and, in the reading and recreation group of items, for sporting goods and television sets and repairs.
3 TABLE li Consumer Price United States city average Major groupj subgroup, and special group indexes, i960 and percent s from selected dates 3 ( =100 unless otherwise specified) es to i960 from -- Group i960 All items 125 A Food Cereals and bakery products A Dairy products Food away from home (Jan. 1953=100) (1/) Housing 2J Rent ll* Solid fuels and fuel oil < Housefurnishingo Household operation Apparel Man's and boys Women's and girls' Other apparel Transportation Privato Public Medical care Personal care Other goods and services Special groups: All items less food All items less shelter Commodities ' < ' Nondurable s Food Nondurablea less food Apparel - < Apparel less footwear <i/> Nondurables less food and apparel Durable s -" New cars Used oars (Jan. 1953=100) (1/) IXirables less cars Commodities less food Services Rent' Services less rent Household operation services, gas, and electricity Medical care services Other services 3/ Purchasing power of the consumer dollar ( =11.00) $0,797 $0, / Not available, 2/ Includes house purchase, interest, taxes, insurance, and upkeep, not shown separately* J/ Includes house purchase, interest, taxes, Insurance, and upkeep services; shoe repairs, television repairs, barber and beauty shop services, and novies.
4 4 TABIS 2s Cobmmbt Arlos IrAmw ill items latent and peroent s, selected dates U.S. city tv*rt * and 20 large cltiaa i960 es ( =100) Xsar Peroent to current month from «United States city average Cities prioad monthly}/ Detroit Los Angelas'... - Philadelphia k Cities prioad In, April, July, 2/ Boston Kansas Minneapolis Pittsburgh Portland, Oregon i Cltiaa prload In March, June, September, 2/ September 1958 September 1958 Atlanta Baltimore Cincinnati St. Louis San Francisco Cltiaa prload in February, May, August, November 2/ November August November 1958 August November 1958 Cleveland Houston Scranton Seattle : Washington, D.'c J/ Rants prload bimonthly. Foods, futls, and a fav othar items prload monthly; rants and othar ooanoditiea and aervloea prioad quarterly. TABLE 3t Consumer Price Peroent s from to i960 U.S. city average and fivs cities priced monthly All iteoa and oi:ii:irlity groups All items Food Housing Apparel Transportation Medical care Personal care Bet (11 ng and reareation Othar goods 6 eervioes Ghited States city average Chicago Detroit Loa Angelas Philadelphia
5 TABUS 4s Consuaer Prioe 111 itesu and oi irflty groups i960 es and percent s, to i960 5 U.S. city average and 10 cities prioed In i960 Group U.8. Average Boston Chicago Detroit Kansas Nev York Los Angeles Minneapolis Philadelphia Pittsburgh Portland Oregon es ( ) All item* Food at hamm Cereals and bakery products 13^ Meats, poultry, and fish Dairy products ' Fruits and vegetables Other foods at ham Rent Oas and electricity Solid fuels and fuel oil --~ Housefaraishings Household operation P lten\ and boys' Footwear Other apparel Public Medical care <42.4 Personal care V6 Beading and recreation Other goods and services from to i960 All items Pood Food at 1mm Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other foods at ham lousing Bent.4 * 1.5 1/.8 1/ Oas and electricity Solid feels and fuel oil lousefurnlshlngs Ssusohold operation * Apparel Men's and boys' Voeen's end girls' Footwear Other apparel ' 1 ' Transportation frlnrtt Public Medical care Bnrscaal care Beading and recreation Other goods and services / Change from November to i960. * Based on revised index for,
6 6 TABIE 5* Consumer Price Food and its subgroups i960 indexes and percent s to i960 U.S. city average and 20 large cities ( ^00) Total food Total food at hone Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables U.S. city average " Atlanta Baltimore Boston Chicago Cincinnati Cleveland Detroit Houston Kansas Los Angeles Minneapolis : l.l New York ' Philadelphia Pittsburgh Portland, Oreg St. Louis San Francisco Scranton Seattle ^1 2.4 Washington, D.C TABLE 61 Consumer Price Average retail prices of selected foods U.S. city average Food and unit i960 Cereals and bakery products: Cents Flour, wheat Biscuit mix - 20 oz Corn meal 13.1 Rice, short grain 18.6 Rice, long grain 20.6 Rolled oats 18 oz Corn flakes oz Bread, white 19.8 Soda crackers 29.0 Vanilla cooicies 24.4 Heat8, poultry, and fisht Round steak. Chuck roast Rib roast Hamburger Veal cutlets Fork chops, center cut Bacon, sliced - Ham, whole leg Frankfurters Luncheon meat, canned -12 oz. Frying chickens, ready-to-cock ib. Ocean perch, fillet, frozen ib. Haddock, fillet, frozen ib. Salmon, pink, canned 16 oz. Tuna fish, canned e to 6i oz. Dairy products: Milk, fresh, (grocery) t» t * Milk, fresh, (delivered) Ice cream gal* Butter I*. Cheese, American process 2 Milk, evaporated t*h-oz. can Fruits and vegetables: Frozen: Strawberries < Orange juice concentrate Peas, green < Beans, green 10 oz. - 6 oz. 10 oz. 9 oz. Fresh1 Apples Oranges, size 200 Lemons Grapefruit -» doz Septs Food and unit Fresh Continued Peaches * Strawberries * Grapes, seedless * Watermelons * Potatoes Sweet potatoes- Onions Carrots Lettuce Celery Cabbage - Tomatoes Beans, green Canned: Orange Juice Peaches - -.Pt... _ head.. M M. 46 oz. can #2i can Pineapple #2 can Fruit cocktail #3<*» can Corn, cream style #303 can Peas, green #303 can Tomatoes - #303 can Baby foods Dried: Prunes Beans Other foods at hone: b to 5 oz. Tomato soup 10& to ll-oz. can Beans with pork. i - lft-oz. can Pickles, sliced 15 oz. Catsup, tomato oz. Coffee Coffee I. can bag Tea bags - pvg. of 16 Cola drink, carton, oz. Shortening, hydrogenated 3 Margarine, colored. ib. Lard Salad dressing pt. Peanut butter. - ib. Sugar n ib. Com ayrup Grape Jelly Chocolate bar Eggs, Grade A, large Gelatin, flavored - 24 oz. > 12 oz. - 1 oz. - doz. I960 Cents Other foods at hoae l.l _1252 Cents * ftrioed only in season* NOTE; Prices for and subsequent dates are not comparable with prices previously published because of a revision in weights for chain and independent stores. I*abor D.C.
7 6A TABLE A: Consumer Price All items and commodity groups annual average indexes and percent s, 1958 to 5 cities priced in i960 (191*7-49=100) Boston Kansas Minneapolis Pittsburgh Portland, Ore. Oromp All items Food at hone Cereals and bakery products Meats* poultry, and fish Dairy products Rent Oaa and electricity Solid fuels and fuel oil Housefumishings Household operation Apparel Men's and boys' Women's and girls' Other apparel Private k.5 Public Personal care Other goods and aarvicaa ,
8 7 Brief Explanation of the CPI The Consumer Price (CPI) measures average s in prices of goods and services usually bought by city families of wage earners and clerical workers. It is based on prices of about 300 items which were selected so that their price s would represent the movement of prices of all goods and services purchased by wage and clerical families; they include all of the important items in family spending. Prices for these items are obtained in k6 cities which were chosen to represent all urban places in the United States; they are collected from grocery and department stores., hospitals, filling stations, and other types of stores and service establishments which wage-earner and clerical-worker families patronize. Prices of foods, fuels, and a few other items are obtained every month in all k6 cities. Prices of most other commodities and services are collected every month in the 5 largest cities and every 3 months in other cities. Mail questionnaires are used to obtain local transit fares, public utility rates, newspaper prices, fuel prices, and certain other items which in price infrequently. Prices of most other goods and services are obtained by personal visits of the Bureau's trained representatives. In calculating the index, price s for the various items in each city are averaged together with weights which represent their importance in family spending. data are then combined in the total index with weights based on the 1950 populations of cities they represent. numbers are computed on the base 19^7-^9 = 100. The national index (the United States city average) includes prices from the 20 large cities for which separate indexes are published in this report, as well as from the following 26 medium-sized and small cities: Anna, Illinois Camden, Arkansas Canton, Ohio Charleston, W. Virginia Evansville, Indiana Garrett, Indiana Glendale, Arizona Grand Forks, N. Dakota Grand Island, Nebraska Huntington, W. Virginia Laconia > New Hampshire Lodi, California Lynchburg, Virginia Madill, Oklahoma Madison, Wisconsin Middlesboro, Kentucky Middletown, Connecticut Newark, Ohio Pulaski, Virginia Ravenna, Ohio Rawlins, Wyoming San Jose, California Sandpo int, Idaho Sha\mee, Oklahoma Shenandoah, Iowa Youngstown, Ohio Comparisons of city indexes show only that prices in one city d more or less than in another. The city indexes cannot be used to measure differences in price levels or in living costs between cities. A description of the index and historical tables of index numbers for the United States city average and for 90 large cities are available on request to the Bureau of Labor Statistics in Washington or any of its regional offices (addresses below). The historical tables include indefc numbers for All Items, Food, Apparel, and Rent for periods from 1913 to date; and for other groups of goods and services from 1935 to date. BLS Regional Offices Atlanta 1371 Peachtree Street, N. E. Zone 9 New York 3^1 Ninth Ave. Zone 1 Chicago Sap. Francisco 105 West Adams St. 630 Sansome St. Zone 3 Zone 11 LABOR - D. C. Boston 18 Oliver St. Zone 10
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