The average cost of a market basket of goods and services in the United States was unchanged in May from April, on a seasonally adjusted basis, according to the U.S. Bureau of Labor Statistics' Consumer Price Index (CPI). May's index of 183.3 was 2.1 percent higher than the May 2002 index of 179.5.
Energy prices fell for the second consecutive month in May, dropping by 3.1 percent. Other categories that decreased were transportation (-1.3 percent), apparel (-0.3 percent) and education and communication (-0.2 percent). Increases were in housing (+0.4 percent), medical care (+0.4 percent), food and beverages (+0.3 percent) and recreation (+0.3 percent), while the other goods and services category was unchanged.
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.
