Full text of CPI Detailed Report : February 1953

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Issued March 26, 1953
U.S. DEPARTMENT OF LABOR
Bureau of Labor Statistics
Washington 25, D. C.

EXECUTIVE 3 - 2 l i 2 0
Moffatt - Ext. 532

CONSUMER PRICE INDEX
FEBRUARY 1953
Consumer Price Index Declines O.U Percent
Between January and February as Meat
Prices Again Drop Sharply

This report presents the Consumer Price Index for
February 1953 for the average of U.S. cities and
for individual cities. The measurement of price
change from January 1953 to February 1953 is based
on the revised index structure. Information about
the index revision is given in the February 1953
Monthly Labor Review or available upon request.
Retail prices of goods and services bought by families of city wage and clerical
workers averaged O.U percent lower in February than January 1953, according to the U.S.
Department of Labor's Bureau of Labor Statistics. Chiefly responsible for the decline was
a further drop of l.U percent in food prices. The group indexes for Reading and Recreation, Transportation, Medical Care, and Other Goods and Services were also slightly lower
than a month ago. The Housing and Personal Care group indexes rose slightly, while the
index for Apparel was unchanged.
Prices in the larger cities which were priced in both January and February
decreased over the month. For the cities priced quarterly, prices on the average decreased
from November to February approximately the same percent in cities of all sizes.
The index for February 1953 dropped to 113«U, calculated on the base 19li7-l*938 100,
the same as for June 1952. This was 0.9 percent higher than a year ago and H.h percent
above June 1950 (pre-Korea). The revised index converted to the base previously used

(1935-39 » 100) was 189.6.

FOOD

The U.S. Food index, based on U6 cities, decreased 1.1+ percent between January and
February with food prices lower, on the average, in all cities surveyed. The February index was 111.5 (19U7-i*9 s 100), the lowest since January 1951. It was 1.0 percent
below a year ago, but 10.9 percent above June 1950. All classes of food declined over the
month, with the sharpest decrease, 2.9 percent, occurring for meats, poultry and fish.
Prices for beef were nearly 10 percent below January 1953 levels. Lamb and poultry prices
fell about 3 percent while pork prices continued to rise, showing approximately a 3 percent
increase over the month. Price movements for meats, poultry and fish were similar in
cities of all sizes.
The decline of 2.2 percent in "Other Foods at Home" was due primarily to price
decreases for eggs, which were about 9 percent lower than a month ago. Lower prices for
butter and for jnilk in some cities caused a decline of 0.8 percent in the Dairy Products
index. The Fruits and Vegetables index was down 0.7 percent as lower prices for ftesh
vegetables more than offset increases in fresh fruit prices. The Cereals and Bakery
Products index declined slightly and restaurant meal prices showed little change.
The fall in retail food prices showed signs of abating as preliminary estimates
based on 6 cities indicated a decline of only 0.2 percent between February 15 and March 2.
This estimate does not include "Food Away from Home."




2

HOUSING

The Housing index for February was 116.6, an advance of 0.2 percent over the month
and 2.3 percent over a year ago. Small increases were reported for all conponents
except Solid Fuels and Fuel Oil, which was unchanged from January. Residential rents rose
0.3 percent over the month. The Housefurnishings index also advanced 0.3 percent over the
month but was unchanged over the quarter. Much of the increase between January and Febrcu
ary resulted from the return to regular prices for textile housefurnishings which were
included in January "white sales." The small advance, 0.2 percent, in gas and electricity
bills reflected a rate increase for gas in Minneapolis and a fuel adjustment for electricity in Cincinnati. The Household Operation subgroup index rose 0.1 percent with higher
prices of soaps and detergents.
APPAREL

The Apparel index was unchanged between January and February. Decreases reported
for women1 s and girls1 apparel particularly in large cities, offset increases for
f
men s and boys1 apparel and footwear.
OTHER
GROUPS

The Transportation index declined 0.2 percent. Used car prices were generally
lower but there were increases in a few cities in the cost of new cars and auto
insurance. The Reading and Recreation group index was 0.3 percent below last
month due to lower prices for sporting goods and television sets. Movies and newspapers
were higher in a few cities. Prices for Medical Care and Other Goods and Services were
0.1 percent lower. Prices for Personal Care rose slightly, 0.1 percent.
GENERAL PRICE SITUATION
Retail prices in February and into March were influenced in the main by general
economic conditions already apparent in January. The downward trend in primary market commodity prices which has persisted almost steadily since early 19^1 is now showing up in
lower retail prices. The average level of retail prices, including both goods and services,
dropped back to the level of June 195>2. Prices of food, apparel, and housefurnishings have
reached the levels of 2 years ago or more; prices of most services continued to edge upward
to peaks or near peaks.
The removal of wage and price controls was coirpleted by mid-March. Although the
ultimate result may not be known for some months, ample supplies of commodities generally
have prevented sudden inflationary effects of decontrol.
The decline in foods, due only in part to normal seasonal influences, followed the
substantial decreases in December and January, and further decreases were reported after
mid-February. All important classes of foods shared in the downward movement. As in Ja.ru
uary, decreases were especially pronounced for beef, reflecting unusually heavy marketings
of steers, which by mid-March had reduced primary market prices of steers to the lowest
point since October 19U6. Average retail prices of meats, poultry and fish were lower than
at any time since November 19^0.
Effects of large production were also apparent for other commodities. Prices of
milk and potatoes have decreased under the influence of large supplies. Heavy supplies of
gasoline led to the rescinding of price rises introduced by wholesale producers in some
areas following decontrol.
Nevertheless, there are present in the price situation some factors which may
lead to higher prices for some commodities. The approach of Easter nas resulted in larger
retail sales, particularly for apparel. Decontrol has been followed by price increases for
a few commodities for which the demand is strong, notably cigarettes and coffee. The full
effect of recently increased costs of some raw materials and increases in wages and other
costs has not yet worked through to retail prices.

OLD SERIES:




The Bureau has resumed compilation of tjie Old Series Index, as directed by the
President on January 30. It is expected that the January and February Old
Series indexes will be available by April 8 0

TABLE 1.

CONSUMER PRICE INDEX 1/ — U.S. AVERAGE ALL ITEMS AND COMMODITY GROUPS
Indexes and Percent Changes for Selected Dates

rcRmrp
Uxtuur

February
1953

January
1953

This Month

Last Month

December
1952

February
1952

June
1950

2 Months Ago

Last Year

Pre-Korea

3

Year
1939
PreWorld War II

INDEXES (191*7-1*9 - 100)
ALL ITEMS

113.1+

113.9

Ulul

112. 1*

101.8

59.1*

FOOD 2/

111.5

113.1

113.8

112.6

100.5

1*7.1

117.6
107.7
110.7
115.9
1Q7.3

112.9
117.7
110.9
111.6
116.7
109.7

113.8
117.7
113.0
112.7
115.8
110.6

112.6
115.5
116.7
112.7
109.5
105.8

100.5
102.7
106.1
92.3
102.5
9U.1

1*7.1
57.2
1*1.6
1*9.8
1*6.3

116.6

116.1;

116.U

llluO

10k.9

121.5
106.1
123.3
108.0
113.5

121.1
105.9
123.3
107.7
113.li.

120.7
105.6
123.2
108.2

108.7
102.7
107.6
97. k

10k. 9

113.lt

116.1I
103.8
117.6
110.0
110.8

APPAREL h/

10iu6

10li.6

105.1

106.8

96.5

52.5

TRANSPORTATION

129.1

129.3

128.9

123.7

109.9

y

Food at home
Cereals and bakery products
Meats, poultry and fish
Daii*y products
Fruits and vegetables
Other foods at home
HOUSING 3/
Rent
Gas and electricity
Solid fuels and fuel oil
Housefurnishings
Household operation

MEDICAL CARE

111.1

99.6

y
y

86.6

56.1*
53.1*

y

119.3

119.li-

119.3

111;. 8

105.1*

y

99.2

y

112.5

112. 1*

112.5

111.1

READING AND RECREATION

107.5

|

107.8

108.0

106.6

102.5

y

OTHER GOODS AND SERVICES 5/

115.8

:

115.9

115.9

lll*.l*

103.7

y

PERSONAL CARE

PERCENT CHANGE TO FEBRUARY 1953 FROM:
January
1953

December
1952

February
1952

June
1950

Year
1939

ALL ITEMS

- o.U

- 0.6

0.9

11.1*

90.0

FOOD 2/

- l.h

- 2.0

- 1.0

10.9

136.7

-

-

2.1*
0.1
1*.7
1.8
0.1
- 3.0

- 1.3
1.8
- 7.7
- 1.8
5.8
1.1*

10.5
11*.5
1.5
19.9
13.1
H*.o

135.9
105.6
158.9
122.3
150.3
121.7

0.2

0.2

2.3

11.2

53.2

0.3
0.2
0
0.3
0.1

0.7
0.5
0.1
- 0.2
0.1

l*.l*
2.2
1*.8
- 1.8
2.1*

11.8
3.3
ll*.6
10.9
12*.0

0

- o.5

- 2.1

8.1*

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

6/
7/

2/

1*0.3
1.1
118.6
102.2
65.9 y
99.2

V

TRANSPORTATION

- 0.2

0.2

h.h

17.5

MEDICAL CARE

- 0.1

0

3.9

13.2

61*. 3 2/

0.1

0

1.3

13.1*

88.8

V

70.6

1/

PERSONAL CARE
READING AND RECREATION

- 0.3

- o.5

0.8

1*.9

OTHER GOODS AND SERVICES 5/

- 0.1

- 0.1

1.2

11.7

1/
?/
3/
H/
£/

v

CO

APPAREL h/

1.6
0.1
2.9
0.8
O.T
2.2

61*.0 1/

See General Explanation at end of tables.
Includes "Food away from home" for which indexes will be available later in 1953*
Includes "Other shelter" for which indexes will be available later in 1953.
Indexes for subgroups of apparel will be available later in 1953.
Includes tobacco, alcoholic beverages, and "miscellaneous services" (such as legal services, banking fees, burial
services, etc.).
Not available. Indexes for 1939 will be published'when calculations are completed.
Approximate.




TABLE 2.

2*

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

(191*7-1*9

-

1 0 0 )

(1935-39 - 100)

City
February
1953

U.S. AVERAGE

3/

January
1953

December
1952

113.1*

113.9

lllul

112.1*

101.8

189.6

113.9
115.1
Hi; .9
111.1
113.7

111* .2
115.7
115J*
111.7
111*. 3

111*. 6
116.0
115.3
112.0
111*. 7

112.7
113.0
lll*.l
110.6
112.1*

102.8
102.8
101.3
100.9
101.6

19i*.0
191*. 3
192.0
183.9
189.2

January
1952

April
1950

January
1953

February
1952

June
1950

February
1953

0/

CITIES PRICED MONTHLY:
Chicago
Detroit
Los Angeles
New York
Philadelphia

CITIES PRICED IN JAN., APR.,
JULY, OCT. k/
Boston
Kansas City
Minneapolis
Pittsburgh
Portland, Ore.

112.1
111*. 3
lHul*
112.6
111* .6

111.8
113.2
113.3 5/
113.1
111*. 9

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

December
1951

Atlanta
Baltimore
Cincinnati
St. Louis
San Francisco

117.1 6/
111*.!*
112.5
111*. 9
115.6

February
1952

CITIES PRICED IN FEB., MAY,
AUG., NOV. k/
Cleveland
Houston
Scranton
Seattle
Washington, D.C.
1/
7/
3/
""
L/
3/
%[

115.6 6/
112.1* ~
111.6
lll*.0
113.0

112.6
111*. 8
110.8
111*. 3
112.0

112.5
116.1
112.2

llh.6
113.0

101.2
101.1*
102.1 5/
99.9 ~
101.5

180.5
I81w0
189.1*
191.6
198.5

December
1952

June
1950

198.6 6/
196.7
189.5
191.8
197.6

101.3 6/
101.6 ~
101.2
101.1
100.9

May
1950

February
1953

100.1*
103.5
100.2
102.0
101.6

191.7
196.6
186.5
195.9
185.5

See General Explanation at end of tables.
These are the same indexes shown in columns 1, 2 or 3, converted to a base of 1935-39 • 100.
The U.S. Average is based on prices collected in 1*6 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.
Foods, fuels, rents and a few other items priced monthly; other commodities and services priced quarterly.
December 1951 and June 1950; formerly priced March, June, September, December.
November 1952, November 1951 and May 1950; formerly priced February, May, August, November.

TABLE 3.

City

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

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

All
Items

Food

- 0.1*

- 1.1*

0.2

-

-

0.1*
0.1
0
0
0.2

0.3
0.5
o.l*
o.5
o.5

1.1*
1.9
1.5
1.3
2.0

Housing

Apparel
0
0.1
0.1
- 0.2
- 0.3
0.7

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




Transportation

Medical
Care

- 0.2

- 0.1

0.1

-

0
0.1
0
- 0.5
0.1

0.3
0.1
- 0.1
0.1
- 0.1

0.1
0.1
0.1
o.l*
o.l*

Personal
Care

Reading
&
Recreation
- 0.3

-

0.1*
o.5
o.l*
o.5
o.l*

Other
Goods &
Services
- 0.1
-

0.1
0.1
0.1
0.1
0.1

TABLE 1*. CONSUMER PRICE INDEX l / ~ ALL ITEMS AND COMMODITY GROUPS
February 1953 Indexes and Percent changes, November 1952 to February 1953
U.S. Average and 10 Cities Priced In February

City

All
Items

Total
Food

Total

y

3/

Housing
Solid
Gas &
Fuels
Elec&
triFuel
city
Oils

Rent

Housefurnishings

TransApparel portation

Household
Operation

5

Medical
Care

Personal
Care

ReadOther
ing & Goods &
Recre- Seration
vices
5/

y

February 1953 Indexes (191*7-1*9 « 100),
U.S. AVERAGE

113.1*

111.5

116.6

Chicago
Cleveland
Detroit
Houston
Los Angeles
New York
Philadelphia
Scranton
Seattle
Washington, D.C.

113.9
112.5
115.1
116.1
111*. 9
111.1
113.7
112.2
111;.6
113.0

109.6
107.9
113.7
111.6
112.1*
110.9
113.2
111.0
110.8
110.1

119.6
115.8
118.7
122.0
122.2
112.6
112.9
115.3
117.5
116.3

121.5

12U.6
136.9

112.1*
128.2

106.1

123.3

108.0

113.5

10l*.6

129.1

119.3

112.5

107.5

115.8

100.0
102.7
109.9
106.5
108.7
108.0
101.8
111.9
98.2
111*. 9

122.0
120.0
117.U

108.2
10l*.7
110.5
103.7
110.6
109.0
111.3
103.0
108.0
109.1

117.5
107.6
107.7
118.2
106.5
116.9
111.2
105.1
108.8
113.1

106.1
10l*.7
102.8
107.1*
iol*.l*
105.1*
10l*.6
106.1*
107.1
103.3

13l*.l*
123.0
126.0
126.7
125.7
127.3
132.8
129.9
129.9
127.1

117.1
119.5
116.8
117.2
118.5
120.7
119.6
lll*.l
123.5
116.6

Hi*. 7
113.7
119.2
119.1*
117.8
106.0
116.2
112.1
111.3
111.6

109.2
ill*. 5
110.5
112.0
iol*.5
106.9
110.2
118.2
107.8
110.6

110.1*
ill*. 5
120.6
116.9
111.6
116.5
120.1*
111*. 2
123.9
122.1

Percent Change
U.S. AVERAGE

- 0.8

- 3.0

0.8

Chicago
Cleveland
Detroit
Houston
Los Angeles
New York
Philadelphia
Scranton
Seattle
Washington,D.C.

- 1.0
- 1.0
- 0.2
0.1
- 0.2
- 1.6
- 0.9
- 0.8
- 0.9
- 0.7

-

2.6
1.5
3.2
0.3
0.5
0.3
0.6
1.1
0.3
0.3

1*.9
5.U
3.5
1.8
1.7
1*.2
3.1*
2.9
3.1
2.9

1.7

2.9
0.8

o.l*
1.1*

130.2
125.1*
138.6
113.7
132.2

- November 1952 to February 1953

0.7

1.1*

0
0
6.3
0.9
1.9
0.3
0
0
0
0

0.7
0.1
0.2

3.0
1.9
3.8
0.1*
3.3

0
- 0.1
- 0.5
0.1
- 0.6
- 0.1
0.1
0.8
0
- 1.0
- 0.5

-

0.2

- 0.6

0.2

0.3

0.1

0.1

0.2
3.8
0.1
0.3
0.1
0.5
1.0
2.1*
0
0.2

- 0.6
- 0.9
O.i*
- 0.3
- 0.8
- 0.6
- 0.5
0
0.1
0.8

0.6
0.3
0
0.5
0.6
0.1*
0.1
0.2
0.2
0.2

0.8
0.1
0
3.9
0
- 0.8
0
2.0
- 0.2
0.2

0
- 1.0
0.1
0.2
- 0.2
0.1
0
0.2
- 0.1*
- 0.2

- 0.1*
5.2
- 0.8
i*.2
2.1*
1.2
0.7
- 0.1*
- 0.3
- 0.5

-

0
0.3
0.2
0.2
0.3
0.1
0.1
0.1
0.1
- 0.1
- 0.7

-

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

TABLE 5. CONSUMER PRICE INDEX 1/ ~ FOOD AND ITS SUBGROUPS
February 1953 Indexes and Percent Changes, January 1953 to February 1953
U.S. Average and 20 Large Cities
(191*7-1*9 » 100)

City

Total Food ±/
Percent
Index Change

Dairy
Meats, Poultry 1
Total
Cereals &
& Fish
Products
Food at Home
Bakery Products
Percent
Percent
Percent!
Percent
Index Change { Index Change
Index Change
Index Change

U.S. AVERAGE

111.5 ; - 1.1*

111.1

- 1.6

111.3
110.6
109.0
109.3
111.9

_ 1.0
_ 1.8
_ 2.0
_ 1.5
-

_

117.6

- 0.1

107.7

2.9 S 110.7

- 0.8

!

i

Atlanta
Baltimore
Boston
Chicago
Cincinnati

111.6
- 0.8
111.1 ; - 1.1*
1.6
109.5 j
109.6
- 1.1*
112.2
-'1.2

Cleveland
Detroit
Houston
Kansas City
Los Angeles

107.9
113.7
111.6
109.5
112.1*

-

2.6
1.9
1.9
0.6
1.5

107.1*
113.2
111.1
108.9
111.9

Minneapolis
New York
Philadelphia
Pittsburgh
Portland, Ore.

112.8
110.9
113.2
112.0
111.3

-

1.0
1.3
2.0
0.9
1.2

112.5
110.5
112.7
111.6
111.0

St. Louis
San Francisco
Scranton
Seattle
Washington,D.C.

112.8
112.2
<111.0
110.8
110.1

-

0.6
1.8
1.1
2.2
1.3

112.1*
111.6
110.7
110.2
109.7

-

_
_
-

•

-

_
-

1.1*

115.5
116.5
116.8
115.1*
116.7

-

0.3
0.3
0.3
0.3
0.8

112.2
108.1
102.1
102.7
108.6

3.0
2.2
2.3
0.7
1.8

113.8
115.1
lll*.5
117.1*
117.1+

- 0.5
0.3
- 0.2
0
0.2

102.8
106,6
105.3
105.9
110.5

1.1
1.5
2.3
1.1
1.1*

119.0
120.6
117.9
117.5
113.5

0
- 0.1*
- 0.1
0
0.1

105.8
109.2
108.6
10l*.6
112.1*

0.7
2.3
1.2
2.7
1.5

112.6
123.3
116.2
118.7
112.2

0.6
0.5
0
- 0.2
- 0.3

107.7
108.7
106.8
105.8
10l*.8

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




-

Other
Fruits &
\
Vegetables
[ Foods at Home
;Percent*
Percent
Index ' Change \ Index Change
f
- 2.2
115.9
- 0.7 | 107.3

_ 0.9
-

-

!
3.6 i
5.2 1
2.7 i•
3.0]!

lll*.i*
111.1
111.8
109.2
109.9

-

-

_ 1*.6
-

-

1 106.2
1*.7 ! 111.1
3.8 | 113.2
2.2 \ 106.8
2.1*
113.0

_ 1.9
-

-

-

_
-

luO
1*.2
1.8
0.2

108.7
105.7
113.1*
112.9
110.3

1.7
3.0
1.5
3.1
1*.6

110.8
111.9
111.0
109.9
113.1*

-

_

-

-

1.6
2.0
0.6
2.0
1.5

- 1.5
- 1.1
- 1.3
0.6
- 2.0

108.0
108.5
109.2
105.2
109.2

-

1.1*
1.3
2.2
0.8
3.0

- 0.2
1.1*
- 2.1
- 1.1
- 2.0

lll*.l
106.7
107.0
111* .2
10 8.0

-

0.9
1.5
2.2
1.0
Iu3

1.2
0.9
1.3
0.8
1.9

ill*. 5
105.0
106.5

~
-

1.8
5.2
2.1
5.3
1.6

-1.3
- 0.8
- 0.9
0.6
- 0.2

5.1*
1.5
2.5
o.3
0

109.1*
125.3
117.7
112.2
110.6

1.8
0.6
0.5
0.2
0.1*

122.0
lll*.2
118.8
111*. 7
111.9

0.2

_ 1.9
-

-

117.1*
115.0
115.1*
11l*.o
115.5

_ 0.1*
_ 0.1
-

ioi.h
105.1*
103.1
113.2
112.6

o.5
o.l*
0.1*
2.2
0.1

0.1

119.1*
115.9
111*. 9 118.3
111*. 8 1

|i
];
j1
!;
|

lOh.k
105.9

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 maiiw
tain 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 prj.ce change only on the cost of living
of these families.
The indexes are presented on a base of 19U7-U9-100. The index numbers thus show
the average increase or decrease in prices from the 19U7-U9 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 iirportant 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 sample of U6 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 cyclemonthly in the 5 largest cities, every 3 months in 25 large and medium-sized cities, and
every U 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 ij. weeks, centered on the 15th 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 sairples
of dwellings in each of the 1*6 cities, and once every 2 years by personal visit, when
local samples of dwellings are als<? reviewed. The rent index measures changes in rent
from one period to another for the same rented dwellings, with the same facilities,
furnishings and s e r v i c e s .
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
Fuels, including Gas and Electricity. Prices prevailing on the 15th of the month
are collected monthly by mail from fuel dealers and utility companies in 1;6 cities.
All Goods and Services other than Foods, Fuels and Rents. Prices are collected
in person, on the city cycle described above, irom 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 U6 cities are combined for the U.S. with the use of 195>0 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 coirpiled for the 20 largest of the I46 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
m

a

A t»"? fTrsv\n

Huntington, W. Virginia
Laconia, New Hampshire
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 'Old Series1
Indexes to the Revised Index."
Bureau of Labor Statistics Bulletin No. 1039: "Interim Adjustment of the
Consumers1 Price Index."
January 1951 Report: "Consumers1 Price Index and Retail Food Prices."
December 1952 Report: "Consumers1 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 Importance 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.