Consumer Price Index: February 2007

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CONSUMER PRICE INDEX: FEBRUARY 2007

The Consumer Price Index for All Urban Consumers (CPI-U) increased
0.5 percent in February, before seasonal adjustment, the Bureau of Labor
Statistics of the U.S. Department of Labor reported today. The February
level of 203.499 (1982-84=100) was 2.4 percent higher than in February
2006.

The Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPI-W) increased 0.5 percent in February, prior to seasonal adjustment.
The February level of 198.544 (1982-84=100) was 2.2 percent higher than in
February 2006.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U)
increased 0.5 percent in February on a not seasonally adjusted basis. The
February level of 118.021 (December 1999=100) was 2.2 percent higher than
in February 2006. Please note that the indexes for the post-2005 period
are subject to revision.

CPI for All Urban Consumers (CPI-U)

On a seasonally adjusted basis, the CPI-U advanced 0.4 percent in
February, following a 0.2 percent increase in January. Energy costs
increased 0.9 percent in February after declining 1.5 percent in January.
In February, the index for petroleum-based energy increased 0.3 percent
and the index for energy services rose 1.5 percent. The food index rose
0.8 percent in February, following a 0.7 percent increase in January.
Grocery store foods rose 1.1 percent, largely reflecting a 4.7 percent
increase in the index for fruits and vegetables. The index for all items
less food and energy advanced 0.2 percent in February, following a 0.3
percent rise in January; an increase in the index for shelter accounted
for about one-half of the February advance.

Table A. Percent changes in CPI for Urban Consumers (CPI-U)
Seasonally adjusted Un-
Compound adjusted
Expenditure Changes from preceding month annual rate 12-mos.
Category 2006 2007 3-mos. ended ended
Aug. Sep. Oct. Nov. Dec. Jan. Feb. Feb.'07 Feb.'07
All Items .3 -.5 -.4 .0 .4 .2 .4 4.0 2.4
Food and beverages .3 .4 .3 -.1 -.1 .7 .8 5.9 3.1
Housing .3 .3 .0 .4 .4 .2 .4 4.2 3.3
Apparel .6 .5 -.5 -.1 .2 .3 .5 4.1 2.1
Transportation .2 -4.1 -3.0 -.8 1.7 -.8 .1 3.8 -.6
Medical care .4 .3 .3 .2 .2 .8 .5 6.0 4.3
Recreation .0 -.1 .1 .1 -.3 .1 .0 -.9 .9
Education and
communication .3 .1 .2 -.2 .2 -.1 .3 1.5 2.0
Other goods and
services .3 .5 .2 .1 .6 .8 .2 6.8 3.6
Special indexes:
Energy .4 -7.3 -6.7 -.2 4.2 -1.5 .9 14.9 -1.0
Food .3 .4 .3 -.1 .0 .7 .8 6.1 3.1
All items less
food and energy .2 .2 .1 .1 .1 .3 .2 2.6 2.7


The food and beverages index rose 0.8 percent in February. The index
for food at home increased 1.1 percent, following a 0.9 percent decrease
in January. Over three-fifths of the February advance was attributable to
a 4.7 percent increase in the index for fruits and vegetables.
Anticipated smaller citrus crops for the 2006-07- season were exacerbated
by adverse weather conditions in January on the West coast, resulting in
sharply higher citrus prices--up 16.3 percent in February. Overall, the
indexes for fresh fruits and for fresh vegetables each increased 5.7
percent, and the index for processed fruits and vegetables rose 0.6
percent. Breakfast cereal prices rose 3.3 percent in February after
declining 2.4 percent in January, largely accounting for the 1.1 percent
increase in the index for cereal and bakery products. The index for
meats, poultry, fish, and eggs, which advanced 0.8 percent in January,
increased 0.4 in February. Beef prices increased 1.3 percent, while the
indexes for pork and for other meats declined 0.6 and 2.9 percent,
respectively. Prices for poultry products rose 0.8 percent and prices for
fish and seafood increased 0.4 percent. The index for eggs rose sharply
for the fourth consecutive month--up 8.0 percent in February and has
advanced 29.1 percent in the last 12 months. The index for other food at
home increased 0.3 percent and the indexes for dairy products and for
nonalcoholic beverages each rose 0.2 percent. The other two components of
the food and beverages index--food away from home and alcoholic beverages-
-increased 0.4 and 0.7 percent, respectively.

The index for housing rose 0.4 percent in February, following a 0.2
percent increase in January. The index for fuels and utilities, which
rose 0.3 percent in January, increased 1.2 percent in February, reflecting
upturns in the indexes for fuel oil and for natural gas. The index for
fuel oil rose 0.5 percent in February, following a 5.6 percent decline in
January. The index for natural gas, which declined 3.0 percent in
January, advanced 5.0 percent in February. Charges for electricity were
virtually unchanged in February after advancing 2.0 percent in January.
The index for shelter increased 0.3 percent in February, the same as in
each of the preceding two months. Within shelter, the index for rent rose
0.4 percent; owners' equivalent rent increased 0.3 percent; and the index
for lodging away from home rose 0.1 percent. (Prior to seasonal
adjustment, the index for lodging away from home increased 4.1 percent.)
The index for household furnishings and operations, which declined 0.3
percent in January, rose 0.2 percent in February.

The transportation index rose 0.1 percent in February, following a
0.8 percent decrease in January. The index for gasoline prices, which
declined 3.0 percent in January, rose 0.3 percent in February. Gasoline
prices were 1.4 percent lower than a year ago and 23.7 percent lower than
their peak level recorded in July 2006. The index for new vehicles
declined 0.1 percent in February and was 1.4 percent lower than in
February 2006. (As of February, about 88 percent of the new vehicle
sample was represented by 2007 models. The 2007 models will continue to
be phased in, with appropriate adjustments for quality change, over the
next several months as they replace old models at dealerships.) The index
for used cars and trucks decreased 0.5 percent in February. The index for
public transportation rose 0.3 percent in January, reflecting a 0.9
percent increase in the index for airline fares.

The index for apparel rose 0.5 percent in February, following a 0.3
percent increase in January. (Prior to seasonal adjustment, apparel
prices rose 2.6 percent, reflecting the introduction of spring-summer
wear. Prices for women's apparel registered the largest advance--up 4.9
percent.)

Medical care costs rose 0.5 percent in February and are 4.3 percent
higher than a year ago. The index for medical care commodities--
prescription drugs, nonprescription drugs, and medical supplies--decreased
0.3 percent. The index for medical care services advanced 0.7 percent.
The indexes for professional services and for hospital and related
services increased 0.7 and 0.6 percent, respectively.

The index for recreation was virtually unchanged in February.
Increases in the indexes for pets, pet products and services and for
recreational reading materials--up 0.8 and 0.3 percent, respectively--
offset declines in the indexes for video and audio, for sporting goods,
for photography, and for toys.

The index for education and communication increased 0.3 percent in
February. Educational costs increased 0.6 percent and communication costs
rose 0.1 percent. Within the communication group, the index for
information and information processing rose 0.1 percent as a 0.2 percent
increase in telephone services more than offset small decreases in the
indexes for personal computers and peripheral equipment, for computer
software and accessories and for internet services and electronic
information providers.

The index for other goods and services increased 0.2 percent in
February. The index for tobacco and smoking products registered its third
consecutive large advance--up 1.0 percent in February--and accounted for
virtually all of the increase in this major group.