Full text of CPI Detailed Report : December 1953

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Issued January 22, 195^
U.S. DEPARTMENT OF LABOR
Bureau of Labor Statistics
Washington 25, D. C.

EXECUTIVE ^-2k20
Moffatt - Ext. 532

CONSUMER PRICE INDEX
DECEMBER 1953

Continued Stability in Consumer Prices;
Index Declines Slightly Between November and December

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This report presents the Consumer Price Index for
December 1953
"the average of U.S. cities and for
individual cities. The measure of price change from
January 1953 forward is based on the revised index
structure. Information about the index revision is
given in the February 1953 Monthly Labor Review or
is available upon request.

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Continued stability marked the Consumer Price Index at the end of 1953- Retail prices of consumer goods and services registered a slight decline (0.1 percent) between November and December 1953* according to the U.S. Department of Labor!s Bureau of
Labor Statistics. Decreases of 0.9 percent for Transportation and 0.2 percent for Apparel
were responsible for the decline. Food prices rose 0.3 percent during the month; Medical
Care and Personal Care were up 0.2 percent, and Other Goods and Services averaged 0.1 percent higher than in November. Housing and Reading and Recreation were unchanged on the
average.
The All Items index for December 1953 was 11^.9 (19^7-1*9 z 100). It was 0.7
percent higher than a year ago and 12.9 percent above the June 1950 level. Converted to a
base of 1935-39 - 100, the December index was 192.1.
FOOD

Retail food prices averaged higher in 31 of the W5 cities surveyed as the U.S.
Food index rose 0.3 percent between November and December. This halted the
decline in food prices which had been in progress since August. The Food index for December was 112.3 (19^7-^9 a 100), 1.3 percent below December 1952, but 11.7 percent above the
June 1950 index.

Prices of Fruits and Vegetables were up 1.7 percent on the average, led by a
sharp increase in fresh tomato prices. Oranges and apples also increased while lettuce
was generally cheaper. Prices for other fresh produce showed relatively small changes over
the month.
Advances in pork prices, averaging around 3 percent, more than offset decreases
of about 1 percent or less in average prices of beef and veal, lamb, other meats, poultry
and fish. This caused the Meats, Poultry and Fish index to rise 0.7 percent. Bread and
flour prices advanced in several cities. Restaurant meal prices were up 0.3 percent.
Egg prices, falling about 5 percent between November and December, largely
accounted for the 1.1 percent decline in the Other Foods at Home index. By December 15,
coffee prices in retail stores (up 0.1 percent over the month) had not yet reflected +he
more recent advances in wholesale markets. Prices of Dairy Products averaged 0.3 percent
lower as decreases in milk prices were reported for several Midwestern cities.
HOUSING




The Housing index remained at the level of November 1953> as increases of 0.2
percent for Rent and 0.1 percent for Household Operation were offset by

2

decreases of 0.5 percent for Solid Fuels and Fuel Oil (principally fuel oil), 0.2 percent
for Housefurnishings, and 0.1 percent for Gas and Electricity. Electricity rates were reduced in one city. Some household durable goods were reported on sale.
APPAREL

There was a decline of 0.2 percent in Apparel prices between November and December. Prices were reduced for women's and girls1 coats and women's wool
suits. Scattered price decreases were reported for men'-s and boys1 apparel, footwear, and
other apparel.

OTHER
GROUPS

The decrease of 0.9 percent in Transportation during the month resulted
chiefly from substantial reductions in prices of some 1953 model automobiles
just prior to the introduction of the 195^ models. Prices of used cars continued to decline throughout the country. Transit fares were raised in a few cities.
Medical Care prices rose 0.2 percent, as fees for professional services continued upward. The rise of 0.2 percent in Personal Care was due mainly to higher prices
for toilet soap and beauty shop services.
Reading and Recreation remained at the level of the previous month. Some reductions were reported in prices of television sets, while motion picture theatre admission
charges were higher. The rise of 0.1 percent for Other Goods and Services reflected higher
prices for beer.
YEAR-END
SUMMARY

The Consumer Price Index for all goods and services moved ^ver a narrow range
during 1953* declining slightly in January and February, then rising for eight
months, and declining again in November and December. Monthly percent changes
were small, not exceeding O.k percent in either direction. The total rise during the year
was 0.7 percent. In the main increases were concentrated in rents and service items; food
prices decreased 1.3 percent and some other commodity prices weakened, in keeping with primary market prices.
Food prices were the most volatile, even though the change over the year was
less than for many other groups. There were seasonal fluctuations in fresh fruits and vegetables and eggs and significant contrasting price movements of beef and pork. Except for a
sharp upturn between July and August, beef prices dropped steadily over the year for a total
decrease of nearly 20 percent. Pork rose throughout the first half of the year, reaching a
new all time peak in August. The total rise in pork prices over the year was over 16 percent. There was a persistent price decline for potatoes, amounting to nearly ^0 percent
during the year. Restaurant meal prices were about 2 percent higher than a year earlier.
Housing prices rose steadily, for a total increase of 2.1 percent, due mainly
to Rent, which advanced 5*7 percent to new record levels. Rents rose uninterruptedly in
1953> with the largest monthly increase, 1.1 percent, reported in August, immediately following removal of Federal rent controls. The Household Operation index also advanced
steadily (3*2 percent) as prices rose for dry cleaning and laundry service, postage, and
telephone service. Gas and Electricity and Solid Fuels and Fuel Oil moved up about ljThe index for Other Goods and Services was up 3*8 percent, principally because
prices of beer and cigarettes, unlike most commodities, rose substantially. Prices of Medical Care increased 3-6 percent, as fees for hospital and professional services continued up
gradually throughout most of the year. Reading and Recreation and Personal Care each advanced about 1 percent with higher prices for newspapers, motion picture admissions, television repair services, and beauty and barber shop services. As the result of the substantial year-end decline, the Transportation index in December 1953 vas at the same level as
in December 1952. Prices of new cars were lower at the year-end and prices of used cars
declined steadily throughout the year. Gasoline, motor oil, auto repairs, railroad and
transit fares were higher than at the beginning of the year.
Apparel prices in December 1953 vere 0.2 percent higher than in December 1952.
The largest monthly change, an increase of 1.0 percent, occurred in September when pricing
of a number of fall and winter items was resumed for the first time since the end of the
previous winter season.
T q tzi^oi o*




TABLE 1.

GROUP

CONSUMER PRICE INDEX l/ — U.S. AVERAGE ALL ITEMS AND COMMODITY GROUPS
Indexes and Percent Changes for Selected Dates
December
1953

November
1953

October
1953

December
1952

June
1950

This Month

Last Month

2 Months Ago

Last Year

Pre-Korea

3
Year
1939
FreWorld War II

INDEXES (1947-49 = 100)
ALL ITEMS
FOOD

2/

Food at home
Cereals and bakery products
Meats, poultry and fish
Dairy products
Fruits and vegetables
Other foods at home
HOUSING

3/

Rent
Gas and electricity
Solid fuels and fuel oil
Housefurnishings
Household operation
APPAREL

4/

114.9

115.0

115.4

114.1

101.8

59.4

112.3

112.0

113.6

113.8

100.5

47.1

111.7
120.9
107.8
110.3
109.2
113.5

111.4
120.6

110.5
107.4
114.6

113.3 . j !
120.4
j|
111.1
!!
1
110.1
1
1
107.7
117.4
;

113.8
117.7
113.0
112.7
115.8
110.6

100.5
102.7
106.1
92.3
102.5
94.1

47.1
57.2
41.6
49.3
46.3

118.9

118.9

118.7

!:

116.4

104.9

y

127.6
107.2
125.3
108.1
117.0

127.3
107.3
125.9
108.3
116.9

126.8
107.0
125.7
108.1
116.6

!

120.7
105.6
123.2
108.2
113.4

108.7
102.7
107.6
97.4
99.6

105.3

105.5

]

!

105.5

105.1

96.5

1

107.0

i?

iS

jj
!

11

;!

|

86.6
104.Q
56.4
53.4
6/

1;

52.5

109.9

;

y

I
ji
I

TRANSPORTATION

128.9

130.1

!

I

130.7

128.9

MEDICAL CARE

123.6

123.3

jI

f

122.8

119.3

!

|

105.4

112.5

1

99.2

'

102.5

PERSONAL CARE

113.6

113.4

|!

113.2

READING AND RECREATION

108.9

108.9

j

108.6

OTHER GOODS AND SERVICES

120.3

120.2

j

119.7

5/

1

!

;j

108.0

s

115.9

1

H

!

1

;
j1

!

103.7

y
6/
6/

y

PERCENT CHANGE TO DECEMBER 1953 FROM:
October
1953

November
1953

HOUSING

0.7

12.9

0.3

- ].l

-3.3

11.7

0.3
0.2
0.7
- 0.2
1.7
- 1.1

- 1.4
0.4
- 3.0
0.2
1.4
- 3.3

- 1.3
2.7

11.1
]7.7

APPAREL

4/

TRANSPORTATION

0.3

i

i

0.9

-

-

93.4

131.4
15^.1

1.6

121.5

19.5

2.6

20.6

;

135.0
334.5

2.1

13.3

j

56.2

5.7
1.5
1.7

17.4

0.1

3.2

6 . 5

k.k
16.4

11.0
17.5

!

\i

|i

V
If

47.3

2.2
122.2

10 2. 4

71.1

1/

0.2

0.2

9.1

1 0 0 . 6

- 1.4

0

17.3

8 7 . 1

1/
li

0.2

0.7

3.6

17.3

70.2

PERSONAL CARE

0.2

0.4

1.0

14.5

90.6

li

0

0.3

0.8

6.2

72.9

li

0.1

0.5

3.3

16.0

70.4

li

OTHER GOODS AND SERVICES 5 /
T7
2/
3/

6/
7/

-

- 0.3
0

2.1

- 5.7

0.6
0.2

0.2
0.1
0.5
0.2
0.1

- 0.2

-

IL.6

IQ39

MEDICAL CARE

READING AND RECREATION

4/
f/

-

-

0.2

0

3/

Rent
Gas and electricity
Solid fuels and fuel oil
Housefurnishings
Household operation

June
1950

- 0.4

2/

Food at home
Cereals and bakery products
Meats, poultry and fish
Dairy products
Fruits and vegetables
Other foods at hon?

1952

- 0.1

ALL ITEMS
FOOD

December

See' General Explanation at end of tables.
Includes "Food away from home".
Includes "Other shelter"; estimates for rent, home purchase, and other home owner costs are reflected monthly in total
housing and all items.
Indexes for subgroups of apparel not yet available.
Includes tobacco, alcoholic beverages, and "miscellaneous services" (such as legal services, banking fees, burial
services, etc.).
Not available.
Approximate.




4

TABLE 2.

CONSUMER PRICE INDEX 1/ — ALL ITEMS INDEXES FOR SELECTED DATES
U.S. Average and 20 Large Cities

f
\ (1935-39 = 1 0 0 )

( l 94 7 - 4 9 * 1 0 0 )
City
December
1953

U.S. AVERAGE

3/

November
1953

October
1953

December
1952

June
1950

114.9

115.0

115.4

114.1

101.8

116.4
116.4
115.8
113.0
115.0

116.4
116.7
116.1
112.9
114.7

117.1
117.2
116.3
113.3
115.3

114.6
116.0
115.3
112.0
114.7

102.8
102.8
101.3
100.9

101.6

October
1952

April
1950

December
1953

•

.
y

192.1

CITIES PRICED MONTHLY:
Chicago
Detroit
Los Angeles
New York
Philadelphia

CITIES PRICED JAN., APR.,
JULY, OCT. 4/

113.8

Boston
Kansas City
Minneapolis
Pittsburgh
Portland, Ore.

115.7

116.6

114.7
116.1

CITIES PRICED IN MAR., JUNE,
SEPT., DEC. 4/

113.4
115.2
114.3 5/
113.4
115.0

December
1952

Atlanta
Baltimore
Cincinnati
St. Louis
San Francisco

117.1
114.5
114.6
116.9
116.9

117.1 6/
114.4
112.5
114.9
115.6

CITIES PRICED IN FEB., MAY,
AUG., NOV. 4/

November
1952

Cleveland
Houston
Scranton
Seattle
Washington, D. C.

113.6
116.0
113.1
115.6
113.3

115.5
117.3
113.4
116.4
114.3

198.2
196.5
193.5
187.0
191.4

October
1953

!

101.2
101.4
102.1 5/
99.9
101.5

|

183.2
186.3
193.1
195.0
201.1

June
1950

December
1953

101.3 6/
101.6
101.2
101.1
100.9

193.6
196.3
193.0
195.1
199.3

May
1950

November
1953
1
;

100.4

1 0 3 . 5
100.2

102.0
101.6

:

I 9 6 . 8
198.6
1
133.5
198.9
187.7

l/ See General Explanation at end of tables.
2/ These are the same indexes shown in columns 1, 2 or 3> converted to a base of 1935-39 s 100.
3/ The U.S. Average is based on prices collected in 46 cities. In addition to the 20 cities listed individually, 26 cities
are included in the national average. Indexes are not calculated for these 26 cities.
4/ Foods, fuels, rents and a few other items priced monthly; other commodities and services priced quarterly.
5/ September 1952 and June 1950; formerly priced March, June, September, December.
£/ November 1952 and May 1950? formerly priced February, May, August, November.

TABLE 3.

CONSUMER PRICE INDEX 1/ — PERCENT CHANGES FROM NOVEMBER 1953 TO DECEMBER 1953
U.S. Average and Five Cities Priced Monthly
All Items and Commodity Groups

All
Items

City

-

U.S. AVERAGE
Chicago
Detroit
Los Angeles
New York
Philadelphia

0.1
0

-

0.3
0.3
0.1
0.3

Fooi

Housing

Apparel

2/

3/

y

0.3

0.1

0.6
0.2
0.5

- 0.2

- 0.9

0

- 0.3
- 0.2
0.2
- 0.4
0

0
- 2.9
- 3.2

-

0
0

0.1

See footnotes on table 1 and General Explanation at end of tables.




Medical
Care

Personal
Care

Reading
&
Recreation

0

0.2

0

Transportation

0.1
0.1

0.2
0
0

0.1
0
2.2

0.2
0.1
- 0.3
0
0.4
0.3

Other
Goods &
Services
5/

0.1

0
- 0.5
0

-

0.2

- 0.3
0

-

0.1
0.1
0.9
0.2
0

5

TABLE 4. CONSUMER PRICE INDEX 1/ — ALL ITEMS AND COMMODITY G ROUPS
December 1953 Indexes and Percent Changes, September 1953 to December 1953
U.S. Average and 10 Cities Priced in December

City

Total
Food

All
Items

2/

Rent

Total

it

Housing
Solid
Fuels
&
Fuel
Oil

Gas &
Electricity

111+.9

112.3

Atlanta
Baltimore
Chicago
Cincinnati
Detroit
Los Angeles
New York
Philadelphia
St. Louis
San Francisco

117.1
111+.5
116.1+
114.6

112.7
112.9
110.5
111+.8

111+.1+

116.1+
115.8

113.4
110.9
114.7
115.1
114.2

113.0

115.0

116.9

116.9

127.6

118.9
123.8
113.7
124.2
116.4
121.3
124.7
115.5
113.2
118.9
118.0

126.9

107.2

125-3

111.8
97.5
99.9
113.2
110.5
109.5

12k,
127.

102.3

130.
123.
132.

119124,

119.

1 0 8 . 9

130.0
127.8

103.8

130.1

Personal
Care

Reading &
Recreation

128.9

123.6

113.6

108.9

1
1
1
1

119.5
132.9
122.7

y

December 1953 Indexes (1947-49
U.S. AVERAGE

Medical
Care

TransHousehold Apparel portation
Operation

Housefurnishings

s

100)

108.1

117.0

112.9
102.7
109.5
103.9
110.3
110.6

109.1

105.3

128.2

110.5
102. If
108.1
103.8
103.2

120.3
121.3
106.7

108.1

108.0

105.5
106.9
105.3
105.0

H3.2

118.2
109.5

2
3
3
3

9
9
2
0

.
.
.
.

0
6
8
5

122.6

10k.2

119.6

110.1
109.3
109.1

Other
Goods
& Services
5/

121+.6

122.0

115.9
108.1
lll+.l
109.3
119.5
117.9
108.1
117.1
110.0
113.0

112.5
113.1
108.7
99.7

112.8
102.8

123.1+
133. T
135.3
136.5
ll+l+.l

121.2
123-4
123.1
133.6

- 1.1+

0.8

0.6

1.0

- 0.1
- 0.1+

2.0
0.2
1.2
1.3
0.5
0.7
1.5
2.2
0.5
0.3

0.8
0
- 0.2
- 0.1+
0
0.1
1.1
0.2
0
0.1

1.2
0.1
2.0
0
2.9
0.5
2.3
0.1+
0.2
0.2

123.0

108.9

110.8

99.6
101+.5

Percent Change -- September 1953 to December 1953
U.S. AVERAGE

0.3

- 1.3

0.1+

Atlanta
Baltimore
Chicago
Cincinnati
Detroit
Los Angeles
New York
Philadelphia
St. Louis
San Francisco

O.k

- 1.7

0.2
0.1

0.4
0.2

0.6

0.1+

0.3

0.2
0.2
0.2
0

-

1.6

-

-

1.8
1.8
2.0
0.1+
1.5
0.9

0.5

0.1

1.3

0.3

2.8

2.8
0.1
0
0
1.1
0
0.1

0.5

0.1 6/
0.7

0
0
0
0
0

.
.
.
.
.

6
3
1
3 6/ ll.o
3 0/ 1+.7

0.6
3.1
0.3
1.3
1.6
o.k

0.5
1.1
0.3

0.5

0

1.0

0.1

0.3

0.3

0.1

0.1+

0
0
0.1+
0.1+
0.7
0.1

0.7

0.3
0.3

1.7

4.4
0

0.1+
0.1

0.8

0.5
0.3

1.0
0

0.5

0.9

0

0.2
0.9
0.5

0.1

0.5

-

0.7

- 0.8

3.6
3.3

-

- 0.2
0
- 0.1+

0.3

1/ through 5/, see footnotes on table 1 and General Explanation at end of tables.
Z/ Change from June 1953 to December 1.953

TABLE 5. CONSUMER PRICE INDEX 1/ — FOOD AND ITS SUBGROUPS
December 1953 Indexes and Percent Changes, November 1953 to December 1953
U.S. Average and 20 Large Cities

(191+7-1+9

Meats, :Poultry
Cereals &
& Fish
Bakery Products
Percent
Percent
Percent
Index Change
Index Change
Change

Total
Food at Home

Total
Percent

Index
112.3
112.7
112.9
109-3
110.5
111+.6

110.3
111+.1+
112.1+
109.1+
113-4

Index

0 . 3

111.7

0 . 5

112.2
112.1

0.2
0.6
0.1
0.2
0.2
0

1 0 7 . 8

109.6

0 07
0.6

120,,9

0.2

107.,8

0.7

110.3

0 . 5

115.,1
121.0
119..1

0.1

0 . 3

115.. 3
109.. 9
104.,1
103..4
111.9

2.2
0.2
0.2
2.0
1.3

110.2
112.1
111.3
108.8
112.3

0.1

1 0 5 ,

1.4

108.0
109.7

1 2 0 .

. 1 1 4 . 4

0.2
0.2
0.6
0.6
0.7

110. i

o.s
O.li

111.2
iio.6
11309
112. s
111.6

0.1
0.2
0.1+
0.6

0.5
1.2

lli+,2
113.8

0.1+
1.2
0.2
0.2
0.2

115.1
111+.2
111.8
111.0

0 . 5

0.2

0 . 2

0
0

1 1 7 . 2

log. 5

1 1 1 . 5

ilO."
110.0

Dairy
Products
Percent
Index Change

0.3
0.3
0.8

0.1+

0.1
0.2

f ,'notes on table




Change

111.3
110.9
114.7
112.9
112.0

110.7

= 100)

.4

.0
118.. 3
1 1 7 .

0.3

116..9
1 2 0 ,

122,
1 2 2 .
1 2 5 .

1.7
0
0.1

.3
• 3

•3
.3

- 0.1
0 . 2

0

1 2 1 .
1 1 9 . . 2
1 1 7 .
1 1 5 . . 9

127..3
1 1 9 . 3

122,.0
115.. 4

-

0.2
0 . 1

0.5
0.2
0.3
- 0.1
0.1

.2
107,• 5
105..8
1 0 5 ,

.0

-

-

108.. 9

.4
108..0
110,. 3

1 0 0 ,

103,.5

110, Q

-

1 0 7 . 6

xoianation at end of tables.

-

_ 0.5
0.2
-

0 . 3

- 1.4
- 0.1

_ 0.3
0

1 1 0 . 6
1 0 8 . 2
1 0 8 . 7

0.1

0.5

106.8

_ 0.2

0.7
1.2

108,.8

0.2

0.6
0.7
1.2

0.2
1.7

107.8

1 0 5 , .3
105,.0

0.1

-

1.9
0.8
1.5

0.3

0.1

-

1 0 9 . 7

1 1 4 . 1

0.3

0.3
-

c.

1
c

1 1 2 . 4

0.2

1 0 9 . 3

106.8
1 1 0 . 3

112.7
107.0
114.4

0 . 1

-

2.4
0.1
0.1
0.1
0.1

Fruits &
Vegetables
Percent
Index Change

ot:her
Foods 1at Home
Percent
Index Change

109.2

113..5

- 1.1

1.7

110.9
108.2
102.5
107.0
110.3

0.• 5
0
- 0.• 9
0 . ,6
- 0.• 5

107..5
111.• 3
104., 1
118..7
119.,4

-

103.7
116.0
113.6
104.5
107.5

-

1 1 5 .

- 2.0

0

•. 9
,4
3 . .6
- 3-. 0
1.•9
0 ,

.0

•3
113.7
114,.1
109,.9
114.6

-

-

0.6
1.5
2.9
1.8

1.0

1.1

- 0.1
- 1.6
0

106.2

3.,2
2 . ,4
- 0,. 3
1.9

119..2
Ill,.4
111.. 8
122,
115..0

-

118.4
116.6
107.3
112.8
106.9

0..7
4..0
2,.1
3--3
2.6

122..6
113..5
Ill,.4
110.,8
110,.2

o.l
0.9
- 2.2
- 1.2
- 1.3

1 1 7 . 9

104.7
113.2

110.2

1 .

- 1.5

2.3
1.9
1.0
0.3

6

GENERAL EXPLANATION

The Consumer Price Index (revised January 1953) measures the average change in
prices of goods and services purchased by city wage-earner and clerical-worker families.
The goods and services included in the index "market basket" are those required to maintain the level of living characteristic of such families in 1952 • The quantities and
qualities of the items in the "market basket" remain the same between consecutive pricing
periods, so that the index measures the effect of price change only on the cost of living
of these families.
The indexes are presented on a base of 19U7-1*>100. The index numbers thus show
the average increase or decrease in prices from the 19U7-li9 average. (For convenience
of users, these indexes are also shown on the base 1935-3^ 100. Note that they are
calculated using the new samples, items and weights). The city indexes do not indicate
whether it costs more to live in one city than in another. Comparisons of city indexes
show only whether prices have risen more or less in one city than another since the base
period.
The Bureau has been compiling the Consumer Price Index for nearly 1*0 years. At
four different times it has been necessary to bring the "market basket" of goods and services up to date and to modernize the samples and methods of calculation. The indexes in
this report are revised as of January 1953. The "market basket" is based on extensive
surveys of postwar expenditure patterns of city families, and reflects changes that have
occurred since prewar in the amounts, kinds and qualities of things people buy, as well as
new things that were not part of our pattern of living a few years ago.
About 300 items are priced to estimate the average change in prices of all items
in the "market basket." Among these items are all the important goods and services that
wage and clerical workers buy. Prices are collected at regular intervals, and the successive prices are compared to determine price changes. The items priced are described
by detailed specifications to insure that as far as possible, the same quality is priced
each time, and that differences in reported prices are measures of price change only.
Prices are obtained in a sairple of i;6 cities representative of all cities in the U.S.,
including the 12 largest urban areas with populations over 1 million, 9 other large cities,
9 medium-sized cities, and 16 small cities. In each city, prices are reported by stores
of various kinds and by service establishments and individuals (such as physicians and
dentists) from whom wage and clerical workers buy goods and services.
Foods, fuels, rents, and a few other items are priced monthly in all cities.
Prices of most other goods and services are obtained on a regular rotating pricing cycle-monthly in the 5 largest cities, every 3 months in 25 large and medium-sized cities, and
every h months in the 16 smallest cities. In any given month, goods and services other
than foods, fuels and rents are priced in 17 or 18 cities out of the U6. Price collection
extends over 3 or U weeks, centered on the l5th of the month. Prices for a few items
(e.g., auto insurance, railroad fares) are computed from published sources.
Food. Food prices are collected monthly from chain and representative independent
food stores in all U6 cities, during the first 3 days of the week which includes the l5th
of the month. Prices for restaurant meals are based on menus collected on the regular
pricing cycle for each city as described above.
Rent. Rents are obtained each month by mail from tenants of representative samples
of dwellings in each of the l|6 cities, and once every 2 years by personal visit, when
local samples of dwellings are als9 reviewed. The rent index measures changes in rent
from one period to another for the same rented dwellings, with the same facilities,
furnishings and services.
Other Shelter. Materials and services for house maintenance and repair are priced
on the regular city pricing cycle. Prices of houses,* fire insurance rates, mortgage
interest and taxes, which change only occasionally, are obtained annually or biennially,
and changes estimated between pricing dates. Sales prices of houses are obtained from
records of mortgages insured by the Federal Housing Administration.




7
Fuels5 including Gas and Electricity, Prices prevailing on the l5th of the month
are collected monthly by mail from fuel dealers and utility coirpanies in
cities.
All Goods and Services other than Foods, Fuels and Rents• Prices are collected
in person, on the city cycle described above, from samples of representative department
stores, apparel and shoe stores, housefurnishings and appliance dealers, barber shops,
beauty shops, doctors, hospitals, moving picture theaters, etc. Prices for such items as
newspapers, street car and bus fares, and telephone service are collected by mail. Prices
of used cars are obtained from car dealers through a trade association.
Price changes for all items in each city are combined in accordance with their
importance in the "market basket" for that city to obtain an average price change for that
city. Price changes for the 1*6 cities are combined for the U.S. with the use of 1950 population data. Each city is given an importance or weight proportionate to the wage-earner
and clerical-worker population it represents in the index. The 12 largest cities, each
weighted by its own population, when combined have about two-fifths of the total weight in
the national index. Each of the 3 other city-size groups has about one-fifth of the total
weight; i.e., the 9 other large cities, the 9 medium-sized cities, and the 16 small cities.
City indexes are compiled for the 20 largest of the l|6 cities priced for the national average. The remaining 26 cities in which prices are collected are:
Anna, Illinois
Camden, Arkansas
Canton, Ohio
Charleston, W. Virginia
Evansville, Indiana
Garrett, Indiana
Glerdale, Arizona
Grand Forlcs, N. Dakota
Grand Island, Nebraska

Huntington, ¥. Virginia
Laconia, New Haitpshire
Lodi, California
Lynchburg, Virginia
Madill, Oklahoma
Madison, Wisconsin
Middlesboro, Kentucky
Middletown, Connecticut
Newark$ Ohio

Pulaski, Virginia
Ravenna, Ohio
Rawlins, Wyoming
San Jose, California
Sandpoint, Idaho
Shawnee, Oklahoma
Shenandoah, Iowa
Youngstown, Ohio

The present index, as described above, has been linked (spliced) to the "interim
adjusted" Consumer Price Index for 3h cities, issued through December 1952, to form a
continuous series back to 1913* 1/
For detailed descriptions of the Consumer Price Index, its uses and limitations,
see the following:
"The Consumer Price Index," A Short Description of the Index as Revised, 1953.
"The Revised Consumers1 Price Index—A Summary of Changes in the Index and
Suggestions for Transition from the •Interim Adjusted1 and f01d Series1
Indexes to the Revised Index."
Bureau of Labor Statistics Bulletin No. 1039: "Interim Adjustment of the
Consumers1 Price Index*"
January 1951 Report: "Consumers* Price Index and Retail Food Prices."
December 1952 Report: "Consumers' Price Index and Retail Food Prices."
Monthly Labor Review articles:
The Revised Consumer Price Index
Adjusted Consumers1 Price Index:
Interim Adjustment of Consumers1
Selection of Cities for Consumer
Revision of the Consumers1 Price

(February 1953)•
Relative Iuportance of Items (June 1951).
Price Index (April 1951).
Expenditure Survey-1950 (April 1951).
Index (July 1950).

1/ See December 1952 report, "Consumers1 Price Index and Retail Food Prices." Tables of
rebased "interim adjusted" indexes for the U. S. and for 20 cities are available upon
request.