The average cost of a market basket of goods and services in the United States increased 0.3 percent in August from July according to the U.S. Bureau of Labor Statistic's Consumer Price Index (CPI). August's index of 180.5 was 1.75 percent higher than the August 2001 index of 177.4.
The overall index for energy costs continued its gradual upward trend, gaining 0.6 percent in August. Compared to last year, however, the energy price index is down 3.0 percent. All price index categories saw an increase in August compared to July. Likewise, all categories except energy (-3.0) and gasoline (-0.3) experienced an increase in price compared to August 2001.
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.
