U.S. Jewelry Price Inflation -3%, Watch Index +1%

RAPAPORT... The U.S. consumer price index (CPI) for jewelry declined 2.6 percent year on year to 172.11 points in February, the lowest index reading to be posted since March 2011. The highest CPI for jewelry was 183.5 points in January 2012.

Nonetheless, the jewelry CPI  in February marked the 37th consecutive month with a reading of more than 170 points, reflecting its continuing maintenance of a historically strong inflation trend. The CPI for watches was basically flat in February, up by just 0.6 percent, at 122.5 points or two points lower than the record high of 124.3 that was  set in July 2013.

Continued price pressures on industry commodities contributed to a  lower jewelry price index during the month. The price for gold in February was about 16 percent lower year on year, while platinum was down 8 percent. The RapNet Diamond Index (RAPI), the global benchmark for polished diamond prices, fell 3.3 percent year on year for 1-carat diamonds, while RAPI for 3-carat diamonds dropped 2.7 percent. RAPI for 0.50-carat stones increased 3.2 percent and the index jumped 11.1 percent for 0.30-carat diamonds.
 
By comparison,  the CPI for all product categories in February increased 1.1 percent year on year to set a new record high of 235.17 points.