The average cost of a market basket of goods and services in the United States increased 0.3 percent in January from December according to the U.S. Bureau of Labor Statistics' Consumer Price Index (CPI). January's index of 181.7 was 2.6 percent higher than the January 2002 index of 180.9.
The price index for energy jumped 4.0 percent during January, following two consecutive monthly decreases. Over the last 12 months, energy prices have increased 14.1 percent. Other categories that saw increases in January were transportation (+1.1 percent), education and communication (+0.5 percent), housing (+0.4 percent), recreation (+0.2 percent), medical care (+0.1 percent), and other goods and services (+0.2 percent). Apparel (-0.9 percent) and food and beverages (-0.2 percent) decreased.
The CPI is based on prices of food, clothing, shelter, fuels, transportation fares, charges for doctor's and dentist's 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.
