The average cost of a market basket of goods and services in the United States increased 0.1 percent in December from November according to the U.S. Bureau of Labor Statistics' Consumer Price Index (CPI). December's index of 180.9 was 2.4 percent higher than the December 2001 index of 176.7.
The price index for energy fell 0.4 percent during December, the second consecutive monthly decrease. However, energy prices are 10.7 percent higher over the last 12 months. Other categories that saw decreases in December were apparel (-0.5 percent) and transportation (-0.3 percent). Medical care (+0.3 percent), food and beverages (+0.2 percent), housing (+0.2 percent), recreation (+0.2 percent), education and communications (+0.2 percent) and other goods and services (+0.1 percent) increased.
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.
