Transmission of material in this release is …

1 Transmission of material in this release is embargoed until USDL-18-0039. 8:30 (EST) January 12, 2018. Technical information: (202) 691-7000 Media Contact: (202) 691-5902 CONSUMER PRICE INDEX DECEMBER 2017. The Consumer Price Index for All Urban Consumers (CPI-U) increased percent in December on a seasonally adjusted basis, the Bureau of Labor Statistics reported today. Over the last 12 months, the all items index rose percent before seasonal adjustment. An increase of percent in the shelter index accounted for almost 80 percent of the 1-month all items increase. The food index rose in December, with the indexes for food at home and food away from home both increasing.

2 The energy index, which rose sharply in November, declined in December as the gasoline index decreased. The index for all items less food and energy increased percent in December, its largest increase since January 2017. Along with the shelter index, the indexes for medical care, used cars and trucks, new vehicles, and motor vehicle insurance were among those that increased in December. The indexes for apparel, airline fares, and tobacco all declined over the month. The all items index rose percent for the 12 months ending December, compared to percent for the 12 months ending November. The index for all items less food and energy increased percent over the last year; the 12-month change has now been either or percent for eight consecutive months.

3 The food index rose percent over the past year; the index for energy increased percent, with all of its major component indexes rising during 2017. Chart 1. One-month percent change in CPI for All Urban Consumers (CPI-U), seasonally adjusted, Dec. 2016 - Dec. 2017. Percent change Dec'16 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec'17. Chart 2. 12-month percent change in CPI for All Urban Consumers (CPI-U), not seasonally adjusted, Dec. 2016 - Dec. 2017. Percent change Dec'16 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec'17. All items All items less food and energy Table A. Percent changes in CPI for All Urban Consumers (CPI-U): city average Seasonally adjusted changes from preceding month Un- adjusted 12-mos.

4 June July Aug. Sep. Oct. Nov. Dec. ended 2017 2017 2017 2017 2017 2017 2017. Dec. 2017. All items ..0 .1 .4 .5 .1 .4 .1 Food ..0 .2 .1 .1 .0 .0 .2 Food at home ..2 .0 .0 .1 .9. Food away from home 1 ..0 .2 .3 .3 .1 .2 .2 Energy .. Energy commodities ..0 Gasoline (all types) ..0 Fuel oil 1 .. Energy services ..4 .6 .3 Electricity ..4 .0 .0 .5 .5 .1 Utility (piped) gas service ..3 .6 All items less food and energy ..1 .1 .2 .1 .2 .1 .3 Commodities less food and energy commodities ..1 .2 New vehicles ..0 .3 .6 Used cars and trucks ..7 Apparel ..3 .1 Medical care commodities ..7 .0 .6 Services less energy services ..2 .2 .4 .2.

5 3 .2 .3 Shelter ..2 .1 .5 .3 .3 .2 .4 Transportation services ..2 .2 .4 .3 .2 .1 .3 Medical care services ..3 .3 .2 .1 .3 .2 1 Not seasonally adjusted. -2- Food The food index increased percent in December. The index for food at home rose percent, largely due to a increase in the index for meats, poultry, fish, and eggs, its largest increase since June 2015. The index for cereals and bakery products also rose in December, increasing percent after a decline in November. The remaining major grocery store food group indexes declined in December. The index for dairy and related products fell percent in December after rising in November.

6 The index for fruits and vegetables declined percent, and the indexes for nonalcoholic beverages and other food at home both fell percent. The index for food away from home rose percent in December, the same increase as in November. Over the last 12 months, the food at home index rose percent, and the index for food away from home increased percent. Energy The energy index declined percent in December following a increase in November. The gasoline index fell percent in December after rising percent in November. (Before seasonal adjustment, gasoline prices decreased percent in December.) The electricity index increased percent in December.

7 The index for natural gas increased percent, its largest increase since May 2017. All the major energy component indexes increased over the past 12 months. The gasoline index rose percent, the electricity index advanced percent, and the index for natural gas increased percent. All items less food and energy The index for all items less food and energy increased percent in December and rose percent over the last 12 months. The shelter index rose percent in December following a increase in November. The rent index increased percent over the month, and the index for owners' equivalent rent advanced percent. The index for lodging away from home increased percent after falling in November.

8 The medical care index increased percent in December. The index for prescription drugs rose percent in December after increasing percent in November. The indexes for hospital services and physicians' services also increased, both rising percent. The index for used cars and trucks also rose in December, increasing percent. The new vehicles index rose percent in December following a increase in November; the index for motor vehicle insurance also increased percent. The indexes for education, communication, and recreation all increased percent in December. In contrast, the apparel index fell percent in December, its fourth consecutive decline.

9 The tobacco index fell percent in December after rising in each of the prior 3 months. The index for airline fares fell percent after a decrease the prior month. The indexes for household furnishings and operations and for personal care were both unchanged in December. -3- Not seasonally adjusted CPI measures The Consumer Price Index for All Urban Consumers (CPI-U) increased percent over the last 12. months to an index level of (1982-84=100). For the month, the index declined percent prior to seasonal adjustment. The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased percent over the last 12 months to an index level of (1982-84=100).

10 For the month, the index declined percent prior to seasonal adjustment. The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased percent over the last 12 months. For the month, the index decreased percent on a not seasonally adjusted basis. Please note that the indexes for the past 10 to 12 months are subject to revision. Year in Review (December to December). The all items CPI rose percent in 2017, the same increase as in 2016, but larger than the 2014 and 2015 increases. It was also larger than the average annual increase over the past 10 years. The food index, which declined percent in 2016, increased percent in 2017.