BLS Daily Report

[Richardson_D <Richardson_D@xxxxxxx>]

BLS DAILY REPORT, WEDNESDAY, JULY 19, 2000

After two months of declines, oil prices shot up in June, pushing the CPI to
a 0.6 percent gain, BLS reports.  In the year ended in June, the CPI has
risen 3.7 percent, an acceleration from the 2.7 percent gain for all of
1999. ...  But the energy price gain is not all a petroleum-based problem,
BLS economist Patrick Jackman told BNA.  Natural gas prices soared by a
record 7.8 percent in June and had gained 16.7 percent year over year. ...
Relief may be coming, at least with oil prices. ...  "We could be looking at
[an energy price] decline of 4 to 5 percent" in the July CPI, Jackman said.
...   (Daniel J. Roy in Daily Labor Report, page D-1).

__With high energy costs the main culprit, consumer price inflation, at
least temporarily, is eating up the lion's share of the average American's
annual increase in wages.  The consumer price index rose 0.6 percent last
month and 3.7 percent over the past 12 months, the fastest rate of increase
since 1991.  Over the same period, average hourly wages for production and
nonsupervisory workers increased 3.6 percent, according to earlier
department reports. These figures include overtime pay but not bonuses or
fringe benefits.  Most analysts think this situation will be short-lived,
because many energy prices appear close to a peak, the food and beverage
prices rose only 0.1 percent last month, and the rest of the consumer price
index -- the "core", which includes both food and energy prices -- rose 0.2
percent for the third month in a row. ...  (John M Berry, Washington Post,
page E1).
__With rising oil and natural gas prices squeezing nearly every household,
the Consumer Price Index jumped by 0.6 percent in June.  But apart from
energy, inflation remained mild.  Natural gas is the heating fuel for most
homes and commercial buildings, and gas prices shot up 7.8 percent, the
biggest one-month increase since the Bureau of Labor Statistics began
tracking them.  With inventories depleted, the price jump reflected fear of
shortages this winter, the bureau said. ...  Core inflation, which many view
as proving a better indicator of underlying inflationary pressures, has
edged up gradually since last year. ...  Rising rents helped to push up
housing costs 0.5 percent last month, although natural gas accounted for
most of the increase.  Airline fares rose by 1.5 percent with higher fuel
costs cited as a justification.  But demand played a roll, analysts said.
Without so much ticket-buying the higher fares might not have stuck, and the
rising cost of fuel would have come out of profits.  "It is difficult to
assess whether fuel prices are driving up fares, or fully booked flights are
doing so," said Patrick Jackman, a senior economist at the bureau's consumer
price division. ...  "Medical costs have started to accelerate somewhat,"
Mr. Jackman noted.  For the 12 months ended in June, they were up 4.1
percent compared with 3.7 percent in 1999.  "Hospital charges are the major
story," Mr. Jackman said, "not what people pay their private physicians. ...
(Louis Uchitelle in New York Times, page C1).
__Away from the gasoline pump, consumer prices rose slowly last month, but
they're still climbing faster than they did last year. ...  (Nicholas Kulish
in Wall Street Journal).

The inflation-adjusted weekly earnings of most U.S. workers edged up 0.1
percent in June, reflecting an acceleration in inflation over the month,
according to BLS....  (Daily Labor Report, page D-14).

An advertisement for maid service franchises in USA Today (page 11B) says
the U.S. Bureau of Labor Statistics recognizes the potential for growth and
opportunity [in maid services], noting that, "Cleaning services are expected
to be the second biggest generator of new jobs for the period 1994-2005."
In addition, the Bureau expects consumer demand to continue increasing
through the next 5 years. ...

A survey commissioned by the Healthcare Leadership Council has found that at
least 11 percent of small businesses in the United States would be expected
to stop providing health care coverage for their workers if their insurance
premiums rose by 5 percent to 9 percent. ...  The survey of 500 employers
defined a small business as having 150 or fewer workers. ...  (Daily Labor
Report, page A-1).

DUE OUT TOMORROW:  Usual Weekly Earnings of Wage and Salary Workers:  Second
Quarter 2000

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