U.S. Jewelry Price Index Approaches Record High in August

RAPAPORT... The U.S. consumer price index (CPI) for jewelry rose 2.5 percent year on year in August to 182.13 points, the highest reading to be posted since the record high of 183.19 points in January 2012. However, for the first eight months of 2013, the jewelry CPI was basically flat, down just 0.4 percent, when compared with 2012. 

The CPI reading in August was the tenth ever to exceed 180 points and marked the 32nd consecutive month with a reading of more than 170 points,  continuing to maintain a historically strong inflation trend.

After reaching a record early in 2012, the prices of gold, platinum and diamonds have remained under pressure, contributing to a slightly lower CPI for most of this year.  Gold was about 16 percent lower year on year in August 2013 and platinum was down by almost 2 percent. The RapNet Diamond Index (RAPI) for 1-carat polished diamonds was down 5.8 percent in August. RAPI for 0.50-carat diamonds was 4.4 percent lower and RAPI for 3-carat diamonds had fallen by 4.3 percent. But RAPI for 0.30-carat diamonds had risen 5.3 percent from one year earlier.

Meanwhile, the CPI for all product categories combined increased 1.5 percent year on year in August to  233.53 points,  a new record that surpassed the previous high set just one month earlier.