The average cost of a market basket of goods and services in the United States decreased 0.1 percent in August, following a 0.8 percent increase in July , on a seasonally adjusted basis, according to the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI). The August level of 218.8 is 5.34 percent higher than in August 2007.
On a seasonally adjusted basis, the CPI-U decreased 0.1 percent in August. The index for energy fell 3.1 percent in August after three consecutive sharp increases. Prices increased in these categories: apparel (+0.5), education and communication (+0.2), food and beverages (+0.6), medical care (+0.2), other goods and services (+0.2) and recreation (+0.5). The index for housing declined (-0.1) and transportation (-1.5).
The core CPI, which excludes food and energy prices, increased 0.2 percent in August, following a 0.3 percent rise in July. Year-over-year core inflation in August was 2.5 percent.
The CPI is based on prices of food, clothing, shelter, fuels, transportation fares, charges for doctors’ and dentists’ services, drugs, and other goods and services that people buy for day-to-day living. Prices are collected in 87 urban areas across the country (including Kansas City and St. Louis) from about 50,000 housing units and approximately 23,000 stores, hospitals and other types of service establishments.
The actual index is expressed as a number derived by comparing the current cost of goods and services to the cost of the same items between 1982-1984. The reference year is given a value equal to 100. Subsequent indices are expressed as a percentage of the base year.
