the consumer price index for August 1970 AND U.S. DEPARTMENT OF LABOR November 1970

Transcription

1 the consumer price index U.S. CITY AVERAGE for August AND SELECTED AREAS U.S. DEPARTMENT OF LABOR BUREAU OF LABOR November STATISTICS

2 the consumer price index U.S. DEPARTMENT OF LABOR J. D. Hodgson, Secretary BUREAU OF LABOR STATISTICS Geoffrey H. Moore, C ommis sioner a monthly report on consumer price movements including statistical tables and technical notes Consumer Price Indexes Commodities and Services UNITED STATES DEPARTMENT OF LABOR *Seasonally adjusted BUREAU Of LABOR STATISTICS Latest Data: August

3 THE CONSUMER PRICE INDEX FOR AUGUST The Consumer Price Index rose 0.2 percent in August to percent of its base. Prices for consumer services continued to advance, despite a slowdown for transportation services, and accounted for almost all of the increase. Commodity prices rose slightly although gasoline, used cars, and grocery store food prices declined. On a seasonally adjusted basis, the August increase in the CPI also amounted to 0.2 percent. This compares with advances of 0.3 percent in the 2 previous months and the 0.5-percent average monthly rate that prevailed earlier in. The increase for the 3 months ending in August was at an annual rate of 3.5 percent and was the smallest since November For perspective, seasonally adjusted and unadjusted monthly percent changes in the index and some of its major components in recent months are given below. Commodities All items Food less food Services Seas. Seas. Seas. Month Unadj adj. Unadj. adj. Unadj. adj. Unadj. November December January February March April May June July Augus t / Percent changes for services are based on unadjusted indexes since these prices have little seasonal movement. Food The food price index, which usually increases slightly between July and August, edged down on a seasonally adjusted basis in August. Over the last 3 months food prices have declined about 1/2 percent after increasing during the first 5 months of the year. In August prices of food purchased in grocery stores declined 0.2 percent on a seasonally adjusted basis as three of the five major categories declined. Prices of restaurant meals and snacks rose but less than in July. Contrary to their usual strong advance, egg prices declined 2.0 percent in August; in July they rose much more than normal. Prices of beef, pork and dairy products were up but by less than is usual for August and poultry prices declined both before and after seasonal adjustment. The meat, poultry, and fish category has been an important factor in the decline in seasonally adjusted retail food prices during the past 3 months. Fruit and vegetable prices rose on a seasonally adjusted basis in August because prices did not decline as much as they normally do. Prices of most fresh vegetables were down, except for a substantial rise for lettuce. Fresh fruit prices, particularly those for grapes, were generally higher on a seasonally adjusted basis. Cereal and bakery products also rose in August primarily due to an increase in bread prices.

4 2 Seasonally adjusted monthly percent changes in the index and some of its major components for the past 6 months are given below. August July June May April March Consumer Price Index: All items Commodities Food Apparel commodities Nondurables less food and apparel Durables Services 1/ Rent Household services less rent Transportation services Medical care services Other services _1/ Percent changes for services are based on unadjusted indexes since these prices have little seasonal movement. Nondurables less food On a seasonally adjusted basis, retail prices of nondurable goods other than food increased 0.1 percent. In July the increase was 0.3 percent after seasonal adjustment. The primary factor in the August rise was a small contraseasonal increase in apparel prices; they usually decline 0.4 percent in August as a result of end of season clearance sales. Due to uncertainty about changing fashions retailers apparently planned to keep inventories low for summer items and began sales earlier than usual. Apparel prices decreased about as much as is usual in July. Gasoline prices, which rose in July, fell significantly in August and helped to offset the increase in apparel prices. Most other types of nondurable goods such as newspapers, cigarettes, and alcoholic beverages showed price increases smaller than last month. Durables Durable commodity prices rose 0.3 percent after seasonal adjustment in August 0.1 percent more than in July but considerably less than in May and June when used car prices rose sharply. The August increase was due primarily to an increase in prices of homes and new cars which more than offset a decline in used car prices. Prices of new cars usually decline about 0.8 percent in August because discounts offered by auto dealers increase. This August they declined only 0.2 percent resulting in a seasonally adjusted increase of 0.6 percent 3 times the July rise and the largest increase since January. Several factors help to explain the seasonally adjusted August price rise. Inventories, which were at record levels earlier in the year, declined to their normal close-out levels in August. With automobile manufacturers scheduling introduction of new models later than last year and labor contracts expiring in September, dealers were aware that current stocks of models might have to suffice for a longer than normal period. Consequently, dealers were reluctant to grant large concessions on models even though sales were not growing rapidly.

5 3 Used car prices were down 2.0 percent the first significant decline since February, In April, May, and June prices rose sharply in response to strong consumer demand; they declined only slightly in July. Household durables prices rose 0.1 percent; household appliances were unchanged from July, but other household durable goods averaged 0.3 percent higher. Services Charges for consumer services rose 0.6 percent; this was about as much as in the preceding 3 months and noticeably less than in the first 4 months of this year. Higher prices for household services other than rent were a major factor in the August rise. Mortgage interest costs rose significantly because of the increase in house prices; mortgage interest rates were up only 0.1 percent from July but were almost 9 percent above the August 1969 level. Prices for recreational services such as movie admissions and film developing rose more than in July. Prices of medical care services increased 0.7 percent for the third month in a row. Local transit fares increased 0.1 percent in August compared with a 2.7 percent rise in July and were completely responsible for the slower rise in transportation services overall. Cost of Living Adjustments Approximately 146,000 workers will receive cost of living pay increases based on the August Consumer Price Index. Based on changes in the index since August 1969, about 96,800 employees, mostly in the aerospace industry, will receive 8-cent hourly increases and another 18,400, including 3,600 in the air conditioning industry, will be given 4 cents per hour more. Quarterly changes of 3 cents per hour resulting from the increase in the index since May will be given to about 18,000 employees, largely in the chemical and farm and road machinery industries. The remaining 12,800 employees, from various industries, will receive increases ranging from 1 to 9 cents based on monthly, quarterly, and semi-annual changes in the national index. About 31,000 other workers whose escalator reviews are tied to the August index will not receive an adjustment because they have already received the maximums stipulated in their contracts. A NOTE ABOUT CALCULATING INDEX CHANGES Effective with the February release, and continuing thereafter, percent changes expressed as annual rates will be computed according to the standard formula for compound growth rates. These data indicate what the percent change would be if the current rate were maintained for a 12-month period. Movements of the indexes from one date to another are usually expressed as percent changes rather than changes in the index points because index point changes are affected by the level of the index in relation to its base period while percent changes are not. The following example illustrates the computation of index point and percent changes: Index Point Change Percent Change August CPI ( =100) Index point difference divided by less July index the index for the previous period: Index point difference = 0.3 ( )/135.7 x 100 = 0.2 Effective with the July release, and continuing thereafter, seasonally adjusted percent changes in the U.S. All Items Index will be based on seasonal adjustment factors and seasonally adjusted indexes carried to two decimal places. This procedure will help to eliminate rounding error in the percent changes.

6 - 4 - TABLE 1. Consumer Price Index--United States city average for urban wage earners and clerical workers, August Group (Unadjusted, unless otherwise indicated) August Indexes ( =100 unless otherwise noted) Percent change to Aucust from: July May August 1 Month 3 Months 1 1 Year 1969 ago ago ago All items All items ( =100) Food Food at home Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other foods at home Food away from home ,.2 135, Shelter 1/ Homeownership 2/ Fuel and utilities 3/ Fuel oil and coal Gas and electricity Household furnishings and operation Apparel and upkeep 4/ Men's and boys' Women's and girls' Footwear Transportation Private , New cars Used cars Gasoline Public Health and recreation Medical care , Personal care Reading and recreation Other goods and services Seasonally Adjusted: Food Apparel and upkeep Transportation , Special Groups: All items less food All items less medical care ,.9 132,.9 127, , , Commodities ,.5 125,.8 121, Nondurables 130,.5 130,.4 129, Nondurables less food , Apparel commodities 130, , Durables Household durables Services less medical care Insurance and finance (Dac.l965«100) Utilities and public transportation f (Dec.1965=100) Housekeeping and home maintenance services (dec.1965=100) Medical care services Purchasing Power of Consumer Dollar: =$1 $0,735 $0,737 $0,743 $0, =$ JL/ Also includes hotel and motel rates not shown separately. 2/ Includes home purchase, mortgage interest, taxes, insurance, and maintenance and repairs. 3/ Also includes telephone, water, and sewerage service not shown separately. 4/ Also includes infants' wear, sewing materials, jewelry, and apparel upkeep services not shown separately. Note: Index applies to month as a whole not to any specific date.

7 - 5 - 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 IJ Pricing Schedule 21 Indexes = =100 Other bases Percent change from: August July May August 1969 U.S. City Average M Chicago M Detroit M Los Angeles-Long Beach M New York M Philadelphia M April July July 1969 Boston Houston Minneapolis-St. Paul Pittsburgh , t August May August 1969 Buffalo (Nov.1963=100) Cleveland Dallas (Nov.1963=100) Milwaukee San Diego (Feb.1965=100) Seattle Washington , June March June 1969 Atlanta Baltimore Cincinnati Honolulu (Dec.1963=100) Kansas City St. Louis San Francisco-Oakland J 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 1960 Census and do not include revisions made since y Foods, 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, June, September, and December. Note: The Consumer Price Index cannot be used for measuring differences in living costs among areas; it indicates price change within areas. Estimates of differences in living costs among areas are found in the family budgets.

8 - 6 - TABLE 3: Consumer Price Index The United States and Selected Areas 1/ For Urban Wage Earners and Clerical Workers, Major Groups Percent change from July to August Group U.S. City Average Chicago Detroit Los Angeles- Long Beach New York Philadelphia All items Food Housing Apparel and upkeep Transportation Health and recreation Medical care Personal care.5 (2/) (2/) (2/) (2/) (2/) Reading and recreation Other goods and services (2/) 1/ See footnote 1, table 2. If Not available. TABLE 4: Consumer Price Index United States City Average for Urban Wage Earners and Clerical Workers for Selected Groups Seasonally Adjusted ( =100) Group Indexes August July May Percent changes to.'august From: 1 Month 3 Months Ago. Ago Food ,4 Food at home ,9 Meats, poultry, and fish ,3 Dairy products ,4 Fruits and vegetables 132., , 1 Other foods at home 115., ,2 Fuel and utilities 1/ 117.,8 117.,4 116.,4.3 1,.2 Fuel oil and coal 123.,8 123.,2 121.,1.5 2,,2 132,,6 132.,1 131.,5.4.8 Apparel and upkeep 2/ Men's and boys' 133, , Women's and girls' 127,,4 126.,6 126., Footwear 148,.0 148,.1 147, Transportation 130,.6 131,.1 129, Private - 126,.5 127,.1 125, New cars 105,.2 104,.6 104, ,.4 125, Commodities less food Nondurables Nondurables less food Apparel commodities Durables Also includes telephone, water, and sewerage service now shown separately. 2/ Also includes infants' wear, sewing materials, jewelry, and apparel upkeep services not shown separately.

9 - 7 - TABLE 5. Consumer Price Index--United States and selected areas 1/ for urban wage earners and clerical workers, commodity groups, August index and percent changes from May U.S.' Group City Chicago Detroit Average Los Angeles- Long Beach Indexes ( =100 unless otherwise specified) New York All items Food Food at home Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other foods at home Food 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 Transportation Private Public Health and recreation Medical care Personal care Reading and recreation Other goods and services (2/) (2/) (2/) (2/) (2/) (2/) (2/) (2/) Percent changes from May to August All items Food Food at home Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other foods at home Food 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 Transportation Private Public Health and recreation Medical care Personal care Reading and recreation Other goods and services (2/) 3/.6 (2/) 3/.4 (2/) (2/) (2/) (2/) 2.2 (2/) (2/) See footnotes at end of table.

10 - 8 - TABLE 5. Consumer Price Index United States and selected areas 1/ for urban wage earners and clerical workers, commodity groups, August index and percent changes from May Continued Group Buffalo 1 Cleveland Dallas ) Milwaukee San Diego (Nov.63=100 ) (Nov.63=100) j (Feb.65=100) 1 _ Indexes ( =100 unless otherwise specified) Seattle Washington All items Food Food at home Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other foods at home Food 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 Transportation Private Public Health and recreation Medical care Personal care Reading and recreation Other goods and services Percent changes from May 197C > to August All items Food Food at home Cereals and bakery products Meats, poultry, and fish Dairy products Fruits and vegetables Other foods at home Food 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 _.Q Transportation Private Public # o Health and recreation Medical care Personal care Reading and recreation Other goods and services , JV Gee footnote 1, table 2. 2/ Mot avahame, 3/ Change from June.

11 - 9 - TABLE 6. Consumer I?rice lndex--united States and selected areas for urban wage earners and clerical workers, food and its subgroups, August indexes and percent changes from July Food at home Food Area 1J Total Cereals Meats, Dairy Fruits Other away food Total and poultry, products and foods from bakery and fish vegetables at home home products Indexes ( =100 unless otherwise specified) U.S. City Average Atlanta Baltimore Boston Buffalo (Nov.1963=100) Chicago Cincinnati Cleveland Dallas (Nov.1963=100) Detroit Honolulu (Dec.1963=100) Houston Kansas City Los Angeles-Long Beach Milwaukee Minneapolis-St. Paul New York , , , Philadelphia ,.6 138,.7 133, Pittsburgh , ,.8 120,.8 130, St. Louis , ,.2 140,.3 140, San Diego (Feb.1965=100) , , San Francisco-Oakland ,.6 126, Seattle , Washington Percent changes July to August U.S. City Average , Atlanta Baltimore , Boston ,.3.4,2.8.0 Buffalo (Nov.1963=100) , Chicago.9,9 1.8,3 1.,0 1., Cincinnati , Cleveland _ ^ o.5 Dallas (Nov.1963=100) , Detroit , ,5.1.3 Honolulu (Dec.1963=100).6, ,3, Houston.3.2.4,1,0,1.4.4,2,2 -., Kansas City.1, Los Angeles-Long Beach * ,1-3. q Milwaukee.0 - Minneapolis-St. Paul.1 2 # i New York « , Philadelphia Pittsburgh St. Louis San Diego (Feb.1965=100) (2/) (2/) San Francisco-Oakland Seattle Washington / See footnote 1, table 2. 2/ Not available.

12 TABLE 7. Consumer Price Index United States city average for urban wage earners and clerical workers, food items, August indexes and percent changes from selected dates Item or Group ( =100 unless otherwise specified) Index 'Percent change to August from-- August July August 1969 Seasonally Seasonally Unadlusted adlusted Unadlusted adjusted Unadjusted Total food Food away from home Restaurant meals Snacks 1/ Food at home Cereals and bakery products Cracker meal 1/ Corn flakes Rice Bread, white Bread, whole wheat 1/ Cookies Layer cake 1/ Cinnamon rolls 1/ Meats, poultry, and fish Meats Beef and veal Steak, round Steak, sirloin 2/ Steak, porterhouse 1/ Rump roast 1/ Rib roast Chuck roast Hamburger Beef liver 1/ _ 3.6 Veal cutlets Pork Chops Loin roast 2/ Pork sausage 1/ _ Picnics 1/ _ #4 Bacon Other meats Lamb chops 1/ Frankfurters Ham, canned JL/ Bologna sausage 1/ Salami sausage 1/ lx H. *7 / _.4 Poultry Frying chicken Chicken breasts 1/ Turkey 1/ _ -.4 _ 11.6 Fish Shrimp, frozen JL/ _ Fish, fresh or frozen Tuna fish, canned _ Sardines, canned 1/ _ Dairy products Il 4.6 Milk, fresh, grocery Milk, fresh, delivered Milk, fresh, skim 1/ Milk, evaporated Ice cream _ Cheese, American process Butter See footnotes at end of table.

13 TABLE 7. Consumer Price Index--United States city average for urban wage earners and clerical workers, food items, August indexes and percent changes from selected dates Item or Group ( unless otherwise specified) Index Percent change to August from-- August July August lvbv Seasonally Seasonally Unadiusted adlusted Unadjusted adlusted Unadjusted Fruits and vegetables Fresh fruits and vegetables Apples Bananas Oranges Orange juice, fresh 1/ Grapefruit Grapes 3/ Strawberries 3/ (3/) (3/) (3/) (3/) (3/) Watermelon 3/ Potatoes Onions Asparagus 3/1/ (3/) - (3/) - (3/) Cabbage Carrots Celery Cucumbers 1/ Lettuce Peppers, green 1/ Spinach 1/ Tomatoes Processed fruits and vegetables Fruit cocktail, canned Pear8, canned 1/ Grapefruit-pineapple juice, canned 1/ Orange juice concentrate, frozen Lemonade concentrate, frozen 2/ Beets, canned 1/ Peas, green, canned Tomatoes, canned Dried beans Broccoli, frozen 1/ Other food at home Eggs Fats and oils: Margarine Salad dressing, Italian 1/ Salad or cooking oil 1/ Sugar and sweets _ 5.2 Sugar Grape jelly Chocolate bar Syrup, chocolate flavored 1/ Nonalcoholic beverages Coffee, can and bag _ 25.4 Coffee, instant 4/ > 11.9 Tea Cola drink _ 5.4 Carbonated fruit drink 1/ _ Prepared and partially prepared foods 1/ Bean soup, canned 1/ _ 5.8 Chicken soup, canned 1/ _ Spaghetti, canned JL/ _ 5.9 Mashed potatoes, instant JL/ Potatoes, french fried, frozen 2/ Baby foods, canned Sweet pickle relish 1./ _ Pretzels 1/ / April / Priced only in season. 4/ July

14 TABLE 8. Consumer Price Index--United States city average for urban wage earners and clerical workers, indexes for selected items and groups August and percent changes from selected dates ( =100 unless otherwise specified) Item or Group Other Percent change to August Index Indexes from: Bases, August July July August 1969 Housing Shelter 1/ Rent Homeownership costs 2J Mortgage interest rates Property taxes Property insurance rates Maintenance and repairs Commodities 3/ Exterior house paint Interior house paint Services Repainting living and dining rooms Reshingling roofs Residing houses Replacing sinks Repairing furnaces Fuel and utilities Fuel oil and coal Fuel oil, 7/ Gas and electricity Gas Electricity Other utilities: Residential telephone services Residential water and sewerage services Household furnishings and operation 4/ Housefurnishings Textiles Sheets, percale or muslin Curtains, tailored, polyester marquisette Bedspreads, chiefly cotton, tufted drapery fabric, cotton or rayon/acetate Pillows, bed, polyester or acrylic filling Slipcovers, ready made, chiefly cotton Furniture and bedding Bedroom suites, good or inexpensive quality (5/) Living room suites, good and inexpensive quality Lounge chairs, upholstered Dining room suites (5/) Sofas, upholstered Sofas, dual purpose Bedding-Mattress and Box Springs June (5/) Aluminum folding chairs 5/ June Cribs Floor coverings Rugs, soft surface ' Rugs, hard surface Tile,vinyl Appliances 7/ Washing machines, electric, automatic Vacuum cleaners, canister type Refrigerators or refrigerator-freezers electric Ranges, free standing, gas or electric Clothes dryers, electric, automatic Air conditioners, demountable June Room heaters, electric, portable 6/ (6/) (6/) (6/) (6/) Garbage disposal units Other housefurnishings: Dinnerware, earthenware Flatware, stainless steel Table lamps, with shade Lawn mowers, power, rotary type June Electric drills, hand held Housekeeping supplies: Laundry soaps and detergents Paper napkins Toilet tissue Housekeeping services: Domestic service, general housework Baby sitter service Postal charges Laundry, flatwork, finished service Licensed day care service, preschool child Washing machine repairs

15 TABLE 8. Consumer Price Index--United States city average for urban wage earners and clerical workers, indexes for and groups, August and percent changes from selected dates--continued ( =100 unless otherwise specified) Item and Group Other Percent change to August Indexes Index from: Bases August July July August 1969 Apparel and upkeep 8/ Apparel commodities Apparel commodities less footwear Men's and boys' Men's: Topcoats, wool 6/ (6/) (6/) (6/) (6/) Suits, year round weight Suits, tropical weight 6 / June 64 (6/) (6/) (6/) Jackets, lightweight Dec Slacks, wool or wool blend Slacks, cotton or manmade blend Trousers, work, cotton Shirts, work, cotton Shirts, business, cotton T-shirts, chiefly cotton J.1 Socks, cotton Handkerchiefs, cotton Dec Boy's: Coats, all purpose, cotton or cotton blend 6/ Dec.63 (6/) (6/) (6/ (6/) Sport coats, wool or wool blend 6/ Dec.63 (6/) (6/) (6/) (6/) Dungarees, cotton or cotton blend Undershirts, cotton Women's and girls' Women's: Coats, heavyweight, wool or wool blend 6/ (6/) (6/) (6/) (6/) Carcoats, heavyweight, cotton 6/ - Dec.63 (6/) (6/) (6/) (6/) Sweaters, wool or acrylic 6/ Dec.63 (6/) (6/) (6/) (6/) Skirts, wool or wool blend 6/ Sept.61 (6/) (6/) (6/) (6/) Skirts, cotton or cotton blend 6/ Mar Blouses, cotton Dresses, street, chiefly manmade fiber Dresses, street, wool or wool blend 6/ (6/) (6/) (6/) (6/) Dresses, street, cotton 6/ (6/) (6/) (6/) (6/) Housedresses, cotton (5/) (5/) (5/) (5/) Slips, nylon Panties, acetate Girdles, manmade blend Brassieres, cotton Dec Hose, nylon seamless Anklets, cotton Dec, Gloves, fabric, nylon or cotton Dec, Handbags, rayon faille or plastic Dec Girl's: Raincoats, vinyl plastic or chiefly cotton Dec..63 (6/) (6/) (6/) (6/) Skirts, wool or wool blend 6/ (6/) (6/) (6/) (6/) Dresses, cotton Slacks, cotton 6/ Dec..63 (6/) (6/) (6/) (6/) Slips, cotton blend Dec., Robes, duster style, quilted tricot or percale 6/ Dec.,63 (6/) (6/) (6/) (6/) Handbags Dec., Footwear Men's: Shoes, street, oxford Shoes, work, high Women's: Shoes, street, pump Shoes, evening, pump Dec Shoes, casual,.pump Dec Houseslippers, scuff Dec Children's: Shoes, oxford Sneakers, boys', oxford type Dec Dress shoes, girls', strap Dec Miscellaneous apparel: Diapers, cotton gauze Yard goods, cotton Wrist watches, men's and women's Dec Apparel services: Drycleaning, men's suits and women's dresses Automatic laundry service Dec Laundry, men's shirts Dec Tailoring charges, hem adjustment Dec Shoe repairs, women's heel lift

16 TABLE 8. Consumer Price Index--United States city average for urban wage earners and clerical workers, indexes for selected items and groups, August and percent changes from selected dates--continued ( =100 unless otherwise specified) Item and Group Other T Percent change to August Index indexes from: Bases August July July August 1969 Transportation i Private 9/ Automobiles, new Automobiles, used Gasoline, regular and premium S Motor oil, premium Tires, new, tubeless Auto repairs and maintenance 10/ Auto insurance rates Auto registration Parking fees, private and municipal Dec, Public Local transit fares Taxicab fares Dec, Railroad fares, coach Airplane fares, chiefly coach Dec, Bus fares, intercity Dec, Health and recreation Medical care Drugs and prescriptions Dec, Multiple vitamin concentrates Dec, Aspirin compounds Dec, Liquid tonics Dec, Adhesive bandages, package Dec, Cold tablets or capsules Dec, Cough syrup Dec, Prescriptions Anti-infectives Mar, Sedatives and hypnotics Mar, Ataractics Mar, Anti-spamodics Mar, Cough preparations Mar, Cardiovasculars and anti-hypertensives Mar, Analgesics, internal Mar, Anti-obesity Mar, Hormones Mar, Professional services: Physicians' fees General physician, office visits General physician, house visits Obstetrical cases Pediatric care, office visits Dec, , Psychiatrist, office visits Dec , Herniorrhaphy, adult Dec, , Tonsillectomy and adenoidectomy , Dentists' fees Fillings, adult, amalgam, one surface Extractions, adult Dentures, full upper Dec., Other professional services: Examination, prescription, and dispensing of eyeglasses Routine laboratory tests Dec., , 2.6 Hospital service charges: Daily service charges Semiprivate rooms "Private rooms Operating room charges Dec X-ray, diagnostic series, upper G.I. Dec., Personal care Toilet goods Toothpaste, standard dentrifrice ,4.9 Toilet soap, hard milled ,6 4.7 Hand lotions, liquid Dec., ,,2-1.7 Shaving cream, aerosol Face powder, pressed Deodorants, cream or roll-on ,6 1.6 Cleansing tissues Home permanent refills Personal care services Men's haircuts Beauty shop services Women's haircuts Dec., Shampoo and wave sets, plain Permanent waves, cold

17 TABLE 8. Consumer Price Index--United States city average for urban wage earners and clerical workers, indexes for selected items and groups, August and percent changes from selected dates--continued ( =100 unless otherwise specified) Item and Group Reading and recreation 11/ Recreational goods TV sets, portable and console TV replacement tubes Radios, portable and table model Tape recorders, portable Phonograph records, stereophonic Movie cameras, Super 8, zoom lens Film, 35mm, color Golf balls, liquid center Basketballs, rubber or vinyl cover Fishing rods, fresh water spincast Bowling balls Bicycle, boys' Tricycles Dog food, canned or boxed Recreational services Indoor movie admissions Adult Children's Drive-in movie admissions, adult Bowling fees, evening Golf greens fees TV repairs, picture tube replacement Film developing, black and white Reading and education: Newspapers, street sale and delivery Magazines, single copy and subscription- Piano lessons, beginner Other goods and services Tobacco products Cigarettes, nonfilter tip, regular size Cigarettes, filter tip, king size Cigars, domestic, regular size Alcoholic beverages Whiskey, spirit blended and straight bourbon Wine, dessert and table Away from home Financial and miscellaneous personal expenses: Funeral services, adult Bank service charges, checking accounts Legal services, short form will Other special groups: All items less shelter Commodities less food Nondurables less food and apparel Household services less rent Transportation services Other services Other Index Bases Mar.59 Indexes Percent change to August from: August July July Aueust / Also includes hotel and motel rates not shown separately. 2/ Also includes home purchase costs not shown separately. 3/* Also includes pine.shelving, furnace air filters, packaged dry cement mix, and shrubbery not shown separately. 4/ Also includes Venetian blinds, nails, carpet sweepers, air deodorizers, steel wool scouring pads, envelopes, reupholstering, and moving expenses. 5/ Not available. 6/ Priced only in season. 11 Also includes radios and television sets, shown separately under reading and recreation. 8/ Also includes men's sport shirts, women's and girls' lightweight coats, women's slacks, bathing suits, girls' shorts, earrings, and zippers not shown separately. 9/ Also includes recapped tires and drivers' license fees not shown separately. 10/ Includes prices for water pump replacement, motor tune-up, automatic transmission repair, exhaust system repair, front end alignment, and chassis lubrication. III Also includes outboard motors, nondurable toys, college tuition fees, paperback books, and college textbooks, not shown separately.

18 Reliability of Percent Changes in the CPI A system of "replicated" samples introduced into the index structure in the 1964 revision permits an estimate of sampling error for the CPI, 1/ The table below shows standard errors for monthly, quarterly, and annual percent changes in the CPI for all items and for nine commodity groupings based on 1969 averages. The figures may be interpreted as follows: the chances'are about 95 out of 100 that the percent change in the CPI as computed differs from the corresponding "complete coverage" change by less than twice the standard error. Data also are shown in terms of the relative error of the standard error of percent changes. The relative errors tend to decrease markedly for successively longer time periods, as expected. Because the CPI is rounded to one decimal place, some ambiguity may arise in interpreting small index changes. The table below indicates, for example, that a monthto-month change of 0.1 percent in the all-items CPI is significant. Because of rounding, however, a change of this size in the published index might result from a much smaller change in the unrounded value. Hence, any particular change of 0.1 percent may or may not be significant. On the other hand, a published change of 0.2 percent is almost always significant, regardless of the time period to which it relates. Standard and Relative Errors of Percent Changes in the CPI Based on 1969 Data Component Standard Error Relative Error Monthly Quarterly Annual Monthly Quarterly Annual Change Change Change Change Change Change All items Food at home Food away from home Housing Apparel Transportation Medical care Personal care Reading and recreation Other goods and services This replaces the table of average errors based on 1968 data which was included in the CPI report through December / The method of deriving these estimates is described in a paper by Marvin Wilkerson, "Measurement of Sampling Error in the Consumer Price Index," Journal of the American Statistical Association, September 1967.

19 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 400 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 f s and every 3 months in other SMSA'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'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 then combined in the total index with weights based on the 1960 populations of SMSA's and cities they represent. Index numbers are computed on the base =100, and are also available on the bases of =100 and 1939=100. The national index (the United States city average) includes prices from the 23 SMSA'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'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, Washington, D. C or any of its regional offices (addresses below).

20 - 18 Regional Offices REGION I Boston Mr. Wendell D. Macdonald 16Q3-A Federal Office Building Boston, Massachusetts Phone: (Area Code 617) Connecticut Maine Massachusetts New Hampshire Rhode island Vermoni REGION II New York Mr. Herbert Bienstock 341 Ninth Avenue New York, New York Phone: (Area Code 212) New Jersey New York Puerto Rico Virgin Islands REGION III Philadelphia Mr. Frederick W. Mueller F nn Square Building, Room Filbert Stieet Philadelphia, Pennsylvania Phone: (Area Code 215) Delaware District of Columbia Maryland Pennsylvania Virginia West Virginia REGION IV Atlanta REGION V Chicago REGION VI - Dallas Mr. Brunswick A. Bagdon 1371 Peachtree Street NE. Atlanta, Georgia Phone: (Area Code 404) Mr. Thomas J. McArdle 219 S. Dearborn Street Chicago, Illinois Phone: (Area Code 312) Mr. Jack F. Strickland 411 N. Akard Street. Room 337 Dallas, Texas Phone: (Area Code 214) Alabama Florida Georgia Kentucky Mississippi North Carolina South Carolina Tennessee Illinois Indiana Michigan Minnesota Ohio Wisconsin Arkansas Louisiana New Mexico Oklahoma Texas REGIONS VII and VIII Kansas City Mr. Elliott A. Browar Federal Office Building 911 Walnut Street Kansas City, Missouri Phone: (Area Code 816) REGIONS IX and X San Francisco Mr. Charles A. Roumasset 450 Golden Gate Avenue Box San Francisco, California Phone: (Area Code 415) Region VII Region VIII Region IX Region X Iowa Kansas Missouri Nebraska Digitized for FRASER Colorado Montana North Dakota South Dakota Utah Wyoming Arizona California Hawaii Nevada Alaska Idaho Oregon Washington

21 A BRIEF The new edition of OF THE AMERICAN LABOR MOVEMENT EDITION US. DEPARTMENT OF LA BOH BURBAU OF LABOH STATISTICS HLUTH 1000 The widely read, authoritative account of trade unionism in the United States, with a chronology of major events in labor history For use by students of social sciences and economics worker education and management training classes civic groups and others interested in the development of trade unionism in America Available from any of these regional offices of the,, or from the Superintendent Of Documents, U.S. Government Printing Office. Washington, D.C., (Make check or money order payable to the Superintendent of Documents.) 1603-A Federal Bldg. Boston, Mass S. Dearborn St. Chicago. III Ninth Ave. New York, N.Y Walnut St. 411 N. Akard St. Kansas City. Mo Dallas. Tex ,17 Filbert St Peachtree St.. NE. Philadelphia, Pa Atlanta, Ga Golden Gate Ave., Box San Francisco, Calif Please send me copies of A Brief History of the American Labor $1.00 each. Payment enclosed: $. Please charge this order Name to my Deposit Account Street address - No City and State - ZIP Code-- FOR PROMPT SHIPMENT. PLEASE PRINT OR TYPE ADDRESS ON LABEL BELOW INCLUDING YOUR ZIP CODE FOR USE OF SUPT. DOCS Enclosed To be mailed later Subscription Refund Coupon refund Postage U.S. GOVERNMENT PRINTING OFFICE DIVISION OF PUBLIC DOCUMENTS WASHINGTON. D.C OFFICIAL BUSINESS RETURN AFTER 5 DAYS Namo Street addr ss City and State ZIP Code POSTAGE AND FEES PAID U.S. GOVERNMENT PRINTING OFFICE

22 The, Announces the Edition of the HANDBOOK OF LABOR STATISTICS The latest compendium on Labor Statistics. Questions: 1. Who works? 2. How long? 3. What is their output? 4. How much are they paid? 5. How are their earnings spent? 6. Are these workers organized? 7. How do answers to the questions above for the United States compare with other countries? 8. How safe are you on your job? For the answer see section on Labor force Employment Unemployment Hours Productivity and unit labor costs Compensation Prices and living conditions General economic data Unions and industrial relations Foreign labor statistics Industrial injuries Get the answers to these and many other questions from the 400-page Handbook of Labor Statistics,, BLS Bulletin ofim&qitet to of the legiottal u ^. j&s. Printing Office, Washington &C* 2M83k 0*lm 0 ^ pay&bte tothe Superintendent oi Dosmmaisul \;/. - ' - v ftstei Ml Ninth Ave. * New York, N.Y ^ ^ ^ V S,. St. ~ in Walnut St. * " ^jui^" ** * ^, Chicago, 111. toascity.mo. 6410$ Enclosed is $. Please send me copies of HANDBOOK OF LABOR STATISTICS (BLS Bulletin 1666) at $3.50 a copy. Name Street City, State, ZIP Code FOR PROMPT SHIPMENT. PLEASE PRINT OR TYPE ADDRESS ON LABEL BELOW INCLUDING YOUR ZIP CODE U.S. GOVERNMENT PRINTING OFFICE DIVISION OF PUBLIC DOCUMENTS WASHINGTON, D.C OFFICIAL BUSINESS Name RETURN AFTER 5 DAYS Sjreet address. Digitized for FRASER City and State ZIP Code POSTAGE AND FEES PAID U.S. GOVERNMENT PRINTING OFFICE