Using the \"unadjusted\" figures, determine what the CPI was for the month. Tabl
ID: 1137387 • Letter: U
Question
Using the "unadjusted" figures, determine what the CPI was for the month.
Table 1. Consumer Price Index for All Urban Consumers (CPI-U): U. S. city average, by expenditure category
Table 1. Consumer Price Index for All Urban Consumers (CPI-U): U.S. city average, by expenditure category, August 2018[1982-84=100, unless otherwise noted]
Expenditure category
Relative
importance
Jul.
2018
Unadjusted indexes
Unadjusted percent change
Seasonally adjusted percent change
Aug.
2017
Jul.
2018
Aug.
2018
Aug.
2017-
Aug.
2018
Jul.
2018-
Aug.
2018
May
2018-
Jun.
2018
Jun.
2018-
Jul.
2018
Jul.
2018-
Aug.
2018
All items
100.000
245.519
252.006
252.146
2.7
0.1
0.1
0.2
0.2
Food
13.224
250.493
253.746
254.077
1.4
0.1
0.2
0.1
0.1
Food at home
7.259
238.843
239.820
240.015
0.5
0.1
0.2
0.2
0.0
Cereals and bakery products
0.955
272.544
273.258
273.338
0.3
0.0
0.6
-0.2
0.0
Meats, poultry, fish, and eggs
1.610
247.985
250.042
250.743
1.1
0.3
-0.6
0.3
0.1
Dairy and related products
0.723
216.537
215.622
216.435
0.0
0.4
0.7
-0.6
0.1
Fruits and vegetables
1.279
295.009
297.632
297.644
0.9
0.0
0.5
1.0
-0.3
Nonalcoholic beverages and beverage materials
0.857
166.822
166.577
167.231
0.2
0.4
0.3
0.0
0.2
Other food at home
1.835
209.905
210.736
210.158
0.1
-0.3
0.1
0.1
0.0
Food away from home(1)
5.965
269.522
276.125
276.648
2.6
0.2
0.2
0.1
0.2
Energy
8.079
205.894
227.107
226.939
10.2
-0.1
-0.3
-0.5
1.9
Energy commodities
4.634
212.978
257.338
256.520
20.4
-0.3
0.6
-0.6
3.0
Fuel oil
0.117
226.590
296.602
296.617
30.9
0.0
2.9
1.2
2.2
Motor fuel
4.445
209.881
253.424
252.546
20.3
-0.3
0.6
-0.6
3.0
Gasoline (all types)
4.351
209.000
252.232
251.367
20.3
-0.3
0.5
-0.6
3.0
Energy services
3.445
208.454
207.091
207.617
-0.4
0.3
-1.5
-0.4
0.4
Electricity
2.688
219.078
217.900
217.967
-0.5
0.0
-1.4
-0.4
0.3
Utility (piped) gas service
0.756
173.646
172.062
173.867
0.1
1.0
-1.7
-0.5
0.9
All items less food and energy
78.697
252.460
257.867
258.012
2.2
0.1
0.2
0.2
0.1
Commodities less food and energy commodities
19.582
143.895
143.861
143.599
-0.2
-0.2
0.0
0.1
-0.3
Apparel
3.006
124.147
122.831
122.447
-1.4
-0.3
-0.9
-0.3
-1.6
New vehicles
3.722
145.712
146.526
146.149
0.3
-0.3
0.4
0.3
0.0
Used cars and trucks
2.429
139.350
140.687
141.095
1.3
0.3
0.7
1.3
0.4
Medical care commodities
1.719
381.114
381.954
382.171
0.3
0.1
0.2
-1.1
-0.3
Alcoholic beverages
0.959
245.042
248.469
248.407
1.4
0.0
0.5
-0.1
0.0
Tobacco and smoking products
0.647
1,029.619
1,062.895
1,064.098
3.3
0.1
-0.4
0.1
0.1
Services less energy services
59.115
319.559
328.641
329.086
3.0
0.1
0.2
0.3
0.2
Shelter
32.811
299.157
308.393
309.296
3.4
0.3
0.1
0.3
0.3
Rent of primary residence
7.786
309.479
319.351
320.651
3.6
0.4
0.3
0.3
0.4
Owners' equivalent rent of residences(2)
23.632
306.201
315.391
316.401
3.3
0.3
0.3
0.3
0.3
Medical care services
6.897
507.390
518.277
516.841
1.9
-0.3
0.5
0.1
-0.2
Physicians' services
1.729
378.990
380.404
380.143
0.3
-0.1
0.0
-0.2
-0.1
Hospital services(3)
2.326
319.394
334.033
332.708
4.2
-0.4
0.8
0.4
-0.1
Transportation services
5.967
309.469
322.842
321.387
3.9
-0.5
0.2
0.5
0.3
Motor vehicle maintenance and repair(1)
1.110
280.488
286.067
286.931
2.3
0.3
0.3
0.1
0.3
Motor vehicle insurance
2.377
530.908
565.547
565.113
6.4
-0.1
0.3
0.2
0.0
Airline fares
0.702
259.359
264.994
255.877
-1.3
-3.4
-0.9
2.7
2.4
Footnotes
(1) Not seasonally adjusted.
(2) Indexes on a December 1982=100 base.
(3) Indexes on a December 1996=100 base.
Table of Contents
Last Modified Date: September 13, 2018
How did the CPI change from the previous month?
How does the CPI compare to the same month one year ago?
What does this mean for the economy and how does it affect economic decisions?
Table 1. Consumer Price Index for All Urban Consumers (CPI-U): U.S. city average, by expenditure category, August 2018[1982-84=100, unless otherwise noted]
Expenditure category
Relative
importance
Jul.
2018
Unadjusted indexes
Unadjusted percent change
Seasonally adjusted percent change
Aug.
2017
Jul.
2018
Aug.
2018
Aug.
2017-
Aug.
2018
Jul.
2018-
Aug.
2018
May
2018-
Jun.
2018
Jun.
2018-
Jul.
2018
Jul.
2018-
Aug.
2018
All items
100.000
245.519
252.006
252.146
2.7
0.1
0.1
0.2
0.2
Food
13.224
250.493
253.746
254.077
1.4
0.1
0.2
0.1
0.1
Food at home
7.259
238.843
239.820
240.015
0.5
0.1
0.2
0.2
0.0
Cereals and bakery products
0.955
272.544
273.258
273.338
0.3
0.0
0.6
-0.2
0.0
Meats, poultry, fish, and eggs
1.610
247.985
250.042
250.743
1.1
0.3
-0.6
0.3
0.1
Dairy and related products
0.723
216.537
215.622
216.435
0.0
0.4
0.7
-0.6
0.1
Fruits and vegetables
1.279
295.009
297.632
297.644
0.9
0.0
0.5
1.0
-0.3
Nonalcoholic beverages and beverage materials
0.857
166.822
166.577
167.231
0.2
0.4
0.3
0.0
0.2
Other food at home
1.835
209.905
210.736
210.158
0.1
-0.3
0.1
0.1
0.0
Food away from home(1)
5.965
269.522
276.125
276.648
2.6
0.2
0.2
0.1
0.2
Energy
8.079
205.894
227.107
226.939
10.2
-0.1
-0.3
-0.5
1.9
Energy commodities
4.634
212.978
257.338
256.520
20.4
-0.3
0.6
-0.6
3.0
Fuel oil
0.117
226.590
296.602
296.617
30.9
0.0
2.9
1.2
2.2
Motor fuel
4.445
209.881
253.424
252.546
20.3
-0.3
0.6
-0.6
3.0
Gasoline (all types)
4.351
209.000
252.232
251.367
20.3
-0.3
0.5
-0.6
3.0
Energy services
3.445
208.454
207.091
207.617
-0.4
0.3
-1.5
-0.4
0.4
Electricity
2.688
219.078
217.900
217.967
-0.5
0.0
-1.4
-0.4
0.3
Utility (piped) gas service
0.756
173.646
172.062
173.867
0.1
1.0
-1.7
-0.5
0.9
All items less food and energy
78.697
252.460
257.867
258.012
2.2
0.1
0.2
0.2
0.1
Commodities less food and energy commodities
19.582
143.895
143.861
143.599
-0.2
-0.2
0.0
0.1
-0.3
Apparel
3.006
124.147
122.831
122.447
-1.4
-0.3
-0.9
-0.3
-1.6
New vehicles
3.722
145.712
146.526
146.149
0.3
-0.3
0.4
0.3
0.0
Used cars and trucks
2.429
139.350
140.687
141.095
1.3
0.3
0.7
1.3
0.4
Medical care commodities
1.719
381.114
381.954
382.171
0.3
0.1
0.2
-1.1
-0.3
Alcoholic beverages
0.959
245.042
248.469
248.407
1.4
0.0
0.5
-0.1
0.0
Tobacco and smoking products
0.647
1,029.619
1,062.895
1,064.098
3.3
0.1
-0.4
0.1
0.1
Services less energy services
59.115
319.559
328.641
329.086
3.0
0.1
0.2
0.3
0.2
Shelter
32.811
299.157
308.393
309.296
3.4
0.3
0.1
0.3
0.3
Rent of primary residence
7.786
309.479
319.351
320.651
3.6
0.4
0.3
0.3
0.4
Owners' equivalent rent of residences(2)
23.632
306.201
315.391
316.401
3.3
0.3
0.3
0.3
0.3
Medical care services
6.897
507.390
518.277
516.841
1.9
-0.3
0.5
0.1
-0.2
Physicians' services
1.729
378.990
380.404
380.143
0.3
-0.1
0.0
-0.2
-0.1
Hospital services(3)
2.326
319.394
334.033
332.708
4.2
-0.4
0.8
0.4
-0.1
Transportation services
5.967
309.469
322.842
321.387
3.9
-0.5
0.2
0.5
0.3
Motor vehicle maintenance and repair(1)
1.110
280.488
286.067
286.931
2.3
0.3
0.3
0.1
0.3
Motor vehicle insurance
2.377
530.908
565.547
565.113
6.4
-0.1
0.3
0.2
0.0
Airline fares
0.702
259.359
264.994
255.877
-1.3
-3.4
-0.9
2.7
2.4
Footnotes
(1) Not seasonally adjusted.
(2) Indexes on a December 1982=100 base.
(3) Indexes on a December 1996=100 base.
Explanation / Answer
a. Compared to July 2018, percent change in CPI in Aug 2018 over July 2018 = (252.146-252.006)*100/252.006 = 0.06%
That is, CPI increased by 0.06%.
b. Compared to Aug 2017, percent change in CPI in Aug 2018 over Aug 2017 = (252.146-245.519)*100/245.519 = 2.69%
Thus, CPI inflation rose by 2.6% over one year.
c. When we compare CPI to the same month one year ago, we notice that inflation rose by 2.6%. On average, anything which costed $1 will cost $1.26. Inflation affects our decisions in many ways. Since some goods become a little more expensive, so we must adjust the quantity of the goods consumed to keep the expenditure constant. It also implies that the workers must also negotiate wages with their employers.
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