THE CONSUMER PRICE INDEX
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1 THE CONSUMER PRICE INDEX JUNE 1966 U.S. CITY AVERAGE and SELECTED AREAS UNITED STATES DEPARTMENT OF LABOR W. Willard Wirtz, Secretary BUREAU OF LABOR STATISTICS Arthur M. Ross, Commissioner
2 CONSUMER PRICE INDEXES: COMMODITIES AND SERVICES INOEX INOEX = I 2 RELATIVE IMPORTANCE ALL ITEMS INDEX as of Dec. ) ALL SERVICES 34% FOOD % NONDURABLES LESS FOOD... 24% / DURABLE COMMODITIES 18% I I 5 All Services >^ I 1 1 All It ems ^ ii^^^ ^ - ^ ^ 15 )d S I 5 1 X NondurableJS Less ^^X Durable s t II 1 Mill I UNITED STATES DEPARTMENT OF LABOR OF LA8H STATISTICS Latest Data: 1966
3 Released July 21, 1966 U.S. DEPARTMENT OF LABOR Bureau of Labor Statistics Washington, D. C CONSUMER PRICE INDEX FOR JUNE 1966 The Consumer Price Index rose by percent in, the United States Department of Labor's Bureau of Labor Statistics announced today. The increase was caused mostly by higher food prices, medical care costs, and mortgage interest rates. At 112 ( =1) the index stood 2 percent above a year ago. Price Changes, May prices customarily go up in, so that the increase was in line with seasonal expectations. The principal increases were for fresh fruit, pork, dairy products and bread. Apples, oranges, grapefruit, and watermelons all bore higher price tags. reduced hog slaughter brought price increases for fresh pork cuts, but beef prices averaged slightly lower. Prices of evaporated milk, butter, and white bread increased by about 1 percent over the month. Margarine prices held steady. Egg prices dropped almost 1 percent, considerably more than the usual decline in, with increased production and lower demand for both domestic and export use. Canned fruit and juice prices moved down by more than 1 percent, in contrast with the increases for fresh fruits. Charges were raised for many types of consumer services. Doctors 1 and dentists 1 fees and health insurance charges rose percent, while hospital charges increased percent. Home repairs, laundry and dry cleaning, and barber and beauty shop services also moved higher. A 2 percent advance in mortgage interest rates in reflected a continuing scarcity of funds for new mortgage lending and the upward climb of interest rates generally. Used car prices went up, as they usually do in, and new cars showed the usual slight price reduction. Gasoline prices rose seasonally. Taxi fare increases in several cities accounted for a percent rise in the index for public transportation. Price Trends, One half of the increase in the Consumer Price Index over the past year has been caused by higher charges for consumer services (up 3 percent). Charges for hospital services, mortgage interest, automobile insurance, home repairs, housekeeping services, and barber and beauty shop services have advanced 5 percent or more. prices in were 3 percent higher than a year ago, with restaurant meals up 4 percent and food in grocery stores up 3 percent. Meat prices averaged 8 percent higher over the year, mostly because of a 14 percent increase for pork. Egg prices climbed 6 percent. Fresh vegetables, on the other hand, were 16 percent cheaper than a year ago. Apparel prices averaged 2 percent higher than in, with footwear up by 6-1/2 percent. Tobacco products also showed an increase of nearly 6 percent, due in part to higher State and local taxes. Used car prices dropped 3-1/2 percent over the year.
4 Cost-of-Living Adjustments About 84, workers will receive cost-of-living wage increases based on the national Consumer Price Index for. Approximately 5,, mostly aircraft workers, will get 2 cents an hour, about 9, will receive 3 cents, and some 21, (mostly interstate bus workers) will receive 1 cent, as a result of the rise in the index since March. An additional 3,65 workers will receive 1 cent an hour as a result of the index rise since December.
5 TABLE 1: Consumer Price Index United States City Average For Urban Wage Earners and Clerical Workers Major group, subgroup, and special group indexes, 1966 and percent changes from selected dates All items Group at home Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other foods at home away from home Homeownership 2/ Fuel and utilities 3/ Fuel oil and coal 4/ Gas and electricity Household furnishings and operation - Apparel and upkeep _5/ Men's and boys' Women's and girls' - Footwear : Private Public Medical care Personal care Reading and recreation Other goods and services 6/ Special groups: 112, adjusted Unadjusted exes ( ) May 1966 Unad- 1usted adjusted * Unadjusted Percent change to 1966 from adjusted 1 Unadjusted Unadjusted adjusted Unadjusted All items less shelter All items less food Commodities TJ Nondurables Durables Tj 8/ Services 9_/ Commodities less food TJ Nondurables less food Apparel commodities Apparel commodities less footwear Nondurables less food and apparel - Used cars Household durables / Housefurnishings Services less rent 9/ Household services less rent - services Medical care services Other services \\l All items index on other bases: Purchasing power of the consumer dollar: «$1. $,886 $ $, $ $ \J Also includes hotel and motel rates not shown separately. 2J Includes home purchase, mortgage interest, taxes, insurance, and maintenance and repairs. 3_/ Also includes telephone, water, and sewerage service not shown separately. kl Called "Solid and petroleum fuels" prior to / Also includes infants' wear, sewing materials, jewelry, and apparel upkeep services not shown separately. 6/ Includes tobacco, alcoholic beverages, and funeral, legal, and bank service charges. TJ Includes home purchase costs which were classified under services prior to / Also includes auto parts, toys, and recreational goods not shown separately. 9/ Excludes home purchase costs which were classified under this heading prior to / Called "Durables less cars" prior to / Includes the services components of apparel, personal care, reading and recreation, and other goods and services. * Corrected index U
6 TABLE 2. Consumer Price Index The United States and Selected Areas For Urban Wage Earners and Clerical Workers, All Items Most recent index and percent changes from selected dates Area 1/ Pricing Schedule 2/ Indexes Other bases Percent change from: 1966 March 1966 U.S. City Average Chicago Detroit Los Angeles-Long Beach - New York Philadelphia April 1966 January 1966 April Boston Houston Minneapolis-St. Paul Pittsburgh May 1966 February 1966 May Buffalo (Nov963=1) - Cleveland Dallas (Nov963=1) Milwaukee San Diego (Feb965-1) LC Washington March 1966 Atlanta Baltimore Cincinnati Honolulu (Dec963=1) Kansas City St. Louis San Francisco-Oakland JL/ Area coverage includes the urban portion of the corresponding Standard Metropolitan Statistical Area (SMSA) except for New York and Chicago where the more extensive Standard Consolidated Areas are used. Area definitions are those established for the 196 Census and do not include revisions made since / s, fuels, and several other items priced every month in all cities; most other goods and services priced as indicated: M - Every month. 1 - January, April, July, and October. 2 - February, May, August, and November. 3 - March,, September, and December.
7 TABLE 3: Consumer Price Index The United States and Selected Areas 1/ For Urban Wage Earners and Clerical Workers, Hajor Groups Percent change from May 1966 to 1966 Group U.S. City Average Chicago Detroit Los Angeles- Long Beach New York Philadelphia All iforno All llclus - ~ Housing Apparel and upkeep Medical care Personal care Reading and recreation Other goods and services (2/) 1/ See footnote 1, table 2. 2/ Not available. TABLE 4: Consumer Price Index United States City Average For Urban Wage Earners and Clerical Workers Major group indexes, selected dates ( =1) ate All items Housing Apparel and upkeep Total Medical care Personal care Reading and recreation Other goods and services 1966: May Apr. Mar. Feb. Jan : Dec. Nov. Oct. Sept. Aug. July Annual Average:
8 TABLE 5: Consumer Price Index United States and Selected Areas 1/ For Urban Wage Earners and Clerical Workers, Commodity Groups 1966 indexes and percent changes from March 1966 Group U.S. City Average Atlanta Baltimore Chicago Cincinnati Indexes ( =1 unless otherwise specified) Honolulu (Dec963=1) All items at home Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other foods at home away from home Housing Shelter Rent Homeownership Fuel and utilities Fuel oil and coal Gas and electricity Household furnishings and operation Apparel and upkeep Men's and boys' Women's and girls' Footwear Private Public Medical care = Personal care Reading and recreation Other goods and services Percent changes March 1966 to 1966 All items 1 at home Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other foods at home away from home Housing Shelter Rent Homeownership Fuel and utilities Fuel oil and coal Gas and electricity Household furnishings and operation / Apparel and upkeep Men's and boys' Women's and girls' Footwear Private Public Medical care Personal care Reading and recreation Other goods and services (3/) (3/) 1 See footnotes at end of table.
9 TABLE 5: Consumer Price Index United States and Selected Areas \J For Urban Wage Earners and Clerical Workers, Commodity Groups 1966 indexes and percent changes from March 1966 Continued Group Kansas City Los Angeles- Long Beach New York Philadelphia San Francisco- Oakland Indexes ( =1 unless otherwise specified) All items at home Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other foods at home away from home Housing Shelter Rent Homeownership Fuel and utilities Fuel oil and coal Gas and electricity Household furnishings and operation Apparel and upkeep Men's and boys' Women's and girls' Footwear Private Public Medical care Personal care Reading and recreation Other goods and services Percent changes March 1966 to 1966 All items 1. 1 at home Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other foods at home away from home _ o Housing Shelter Rent Homeownership Fuel and utilities Fuel oil and coal Gas and electricity Household furnishings and operation , Apparel and upkeep Men's and boys' Women's and girls' Footwear ' Private Public Medical care Personal care Reading and recreation Other goods and services (3/) 1 2 (3/) T7 See footnote 1, table 2. 2/ Change from April / Not available.
10 TABLE 6: Consumer Price Index United States and Selected Areas For Urban Wage Earners and Clerical Workers, and its Subgroups 1966 indexes and percent changes from May 1966 Area 1/ Total food Total Cereals and bakery products Meats, poultry, and fish at home Dairy products Fruits and vegetables Other foods at home away from home Indexes ( =1 unless otherwise specified) U.S. City Average Atlanta Baltimore Boston Buffalo (Nov963=1) Chicago Cincinnati Cleveland Dallas (Nov963=1) - Detroit Honolulu (Dec963=1) Houston Kansas City Los Angeles-Long Beach Minneapolis-St. Paul New York Philadelphia Pittsburgh St. Louis San Francisco-Oakland - Seattle Washington b Z Percent changes May 1966 to 1966 U.S. City Average 2-1 Atlanta Baltimore Boston Buffalo (Nov963=1) Chicago Cincinnati Cleveland Dallas (Nov963=1) - Detroit Honolulu (Dec963=1) Houston Kansas City Los Angeles-Long Beach Minneapolis-St. Paul New York Philadelphia Pittsburgh St. Louis San Francisco-Oakland - Seattle Washington , V See footnote 1, table 2.
11 TABLE 7: Consumer Price Index United States City Average For Urban Wage Earners and Clerical Workers, Items 1966 indexes and percent changes from selected dates ( =1 unless otherwise specified) Item or Group Total food away from home Restaurant meals Snacks _1/ at home Cereals and bakery products Flour Cracker meal JL/ Corn flakes Rice T.read, white Bread, whole wheat 1_/ Cookies Layer cake \j Cinnamon rolls \J Meats, poultry, and fish Meats Beef and veal Steak, round Steak, sirloin 2] Steak, porterhouse \J Rump roast \J Rib roast Chuck roast Hamburger Beef liver 1/ Veal cutlets Pork Chops Loin roast 2J Pork sausage \J Ham, whole Picnics 1/ Bacon Other meats Lamb chops \J Frankfurters Ham, canned l_l Bologna sausage JL/ Salami sausage \J Liverwurst _1/ Poultry Frying chicken Chicken breasts \J Turkey 1/ Fish Shrimp, frozen 17 Fish, fresh or frozen Tuna fish, canned Sardines, canned JV Dairy products Milk, fresh, grocery Milk, fresh, delivered Milk, fresh, skim JL/ Milk, evaporated Ice cream Cheese, American process - Butter See footnotes at end of table. Index 1966 Unadjusted adjusted , , 97, 12, 15, 114, 116, 112, 18, 16, 11, 14, 118, 14, 116, 18, 127, 123, , 113, 125, 132, 119, , 12, Percent change to 1966 from May 1966 Unadjusted adjusted Unadjusted
12 1 TABLE 7; Consumer Price Index United States City Average For Urban Wage Earners and Clerical Workers, Items 1966 indexes and percent changes from selected dates Continued ( =1 unless otherwise specified) Item or Group Index 1966 Unadjusted adjusted Percent change to 1966 from May 1966 Unadjusted adjusted Unadjusted Fruits and vegetables Fresh fruits and vegetables Apples Bananas Oranges Orange juice, fresh \J Grapefruit Grapes * Strawberries * Watermelon * Potatoes Onions Asparagus * \J Cabbage Carrots Celery Cucumbers \J Lettuce Peppers, green \J Spinach \J Tomatoes Processed fruits and vegetables Fruit cocktail, canned Pears, canned \J Grapefruit-pineapple juice, canned \J Orange juice concentrate, frozen Lemonade concentrate, frozen _2/ Beets, canned \J Peas, green, canned Tomatoes, canned Dried beans Broccoli, frozen J./ Other food at home Eggs Fats and oils: Margarine Salad dressing, Italian \_l Salad or cooking oil 17 Sugar and sweets Sugar Grape jelly Chocolate bar Syrup, chocolate flavored \J Nonalcoholic beverages Coffee, can and bag Coffee, instant _3_/ Tea Cola drink Carbonated fruit drink 1/ Prepared and partially prepared foods V Bean soup, canned \J Chicken soup, canned \j Spaghetti, canned ]_./ Mashed potatoes, instant 1/ Potatoes, french fried, frozen 2J Baby foods, canned Sweet pickle relish 1/ Pretzels 1/ , 13, , , 1, 14, 97, * (4/) ,1 1-4 * 14 W) * / December 1963=1. 2/ April 196=1. 3/ July 1961=1. 4V Not available. * Priced only in season.
13 11 Brief Explanation of the CPI The Consumer Price Index (CPI) measures average changes in prices of goods and services usually bought by urban wage earners and clerical workers, both families and single persons living alone. It is based on prices of about 4 items which were selected to represent the movement of prices of all goods and services purchased by wage earners and clerical workers. Prices for these items are obtained in urban portions of 39 Standard Metropolitan Statistical Areas (SMSA's) and 17 smaller cities, which were chosen to represent all urban places in the United States, including Alaska and Hawaii. They are collected from grocery and department stores, hospitals, filling stations, and other types of stores and service establishments which wage earners and clerical workers patronize. Prices of foods, fuels, and a few other items are obtained every month in all 56 locations. Prices of most other commodities and services are collected every month in the 5 largest SMSA's and every 3 months in other SMSA T s and cities. Mail questionnaires are used to obtain local transit fares, public utility rates, newspaper prices, fuel prices, and certain other items which change in price infrequently. Prices of most other goods and services are obtained by personal visits of the Bureau 1 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 all wage earners and clerical workers. SMSA and city data are than combined in the total index with weights based on the 196 populations of SMSA's and cities they represent. Index numbers are computed on the base =1, and are also available on the bases of =1 and 1939=1. The national index (the United States city average) includes prices from the 23 SMSA f s for which separate indexes are published in this report, as well as from the following additional locations: Alabama - Florence Alaska - Anchorage California - Bakersfield* Colorado - Denver* Connecticut - Hartford* Florida - Orlando* Indiana - Indianapolis* Indiana - Logansport Illinois - Champaign-Urbana* Iowa - Cedar Rapids* Kansas - Wichita* Louisiana - Baton Rouge* Maine - Portland* Massachusetts - Southbridge Michigan - Niles Minnesota - Crookston Mississippi - Vicksburg New Jersey - Millville New York - Kingston North Carolina - Durham* North Dakota - Devils Lake Ohio - Dayton* Ohio - Findlay Oklahoma - Mangum Oregon - Klamath Falls Pennsylvania - Lancaster* South Carolina - Union Tennessee - Nashville* Texas - Austin* Texas - McAllen Utah - Orem Virginia - Martinsville Wisconsin - Green Bay* *Standard Metropolitan Statistical Area Comparisons of indexes for individual SMSA f s show only that prices in one location changed more or less than in another. The SMSA indexes cannot be used to measure differences in price levels or in living costs between areas. A description of the index and historical tables of index numbers for the United States city average and for 23 large SMSA's are available on request to the Bureau of Labor Statistics, Washington, D. C or any of its regional offices (addresses below). BLS Regional Offices 1371 Peachtree Street, N.E. Atlanta, Georgia Golden Gate Avenue San Francisco, California Ninth Avenue New York, New York 11 John F. Kennedy Fed. Bide. Boston, Massachusetts O2llO 219 South Dearborn Street Chicago, Illinois Ontario Street Cleveland, Ohio 44114
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