New York-New Jersey Information Office

News Release Information

14–1750–NEW

Wednesday, September 17, 2014

Contacts

Technical information:
Media contact:
  • Martin Kohli (646) 264-3620

Consumer Price Index, New York-Northern New Jersey – August 2014

Area prices down 0.2 percent over the month and up 1.3 percent over the year

Prices in the New York-Northern New Jersey-Long Island area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), edged down 0.2 percent in August after little change in June and July, the U.S. Bureau of Labor Statistics reported today. Chief Regional Economist Martin Kohli explained that a decline in energy prices was largely offset by higher prices for shelter and other expenditures. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect seasonal influences.)

Over the year, the CPI-U increased 1.3 percent. (See table A. ) The all items less food and energy index rose 1.5 percent. The 12-month percentage increase in both indexes slowed since May. (See chart 1.)

Chart 1. Over-the-year percent change in CPI-U, New York-Northern New Jersey-Long Island, August 2011-August 2014

Food

Following a 1.0-percent jump in July, the food index fell 0.5 percent. A 0.9-percent decline in prices for food at home accounted for the downturn, with lower prices reported for breakfast cereal, soups, fish and seafood, fresh vegetables (including potatoes), and snacks. Prices for food away from home inched up 0.1 percent.

Over the year, the food index increased 2.2 percent. Prices for food at home rose 2.0 percent, and prices for food away from home advanced 2.4 percent. (See table 1.)

Energy

The energy index dropped 3.2 percent, after decreasing 0.9 percent in July. Gasoline prices fell 4.4 percent, and household energy prices declined 2.2 percent. Price reductions occurred within natural gas (-3.9 percent), electricity (-1.9 percent), and fuel oil.

From August 2013 to August 2014, energy prices retreated 1.4 percent. Prices for gasoline were down 4.1 percent, and for natural gas, -5.4 percent. Electricity prices, on the other hand, were 3.7 percent higher.

All items less food and energy

The index for all items less food and energy increased 0.2 percent after no change for two consecutive months. Apparel prices, often up at this time of year with the introduction of fall and winter lines, rose 2.9 percent. Shelter prices advanced 0.4 percent, reflecting a 0.4-percent increase in residential rent and a 0.3-percent rise in owners’ equivalent rent. Rising prices for educational books and supplies helped pull up the education and communication component 0.1 percent. These increases were tempered by declines in other goods and services (-0.7 percent), recreation (-0.4 percent), and medical care (-0.3 percent).

For the year ended August 2014, the index for all items less food and energy increased 1.5 percent. Shelter prices rose 2.7 percent, including a 3.1-percent increase in residential rent. Medical care rose 2.7 percent, and apparel, 0.9 percent.

Table A. New York-Northern New Jersey CPI-U 1-month and 12-month percent changes (not seasonally adjusted)
Month 2009 2010 2011 2012 2013 2014
1-month 12-month 1-month 12-month 1-month 12-month 1-month 12-month 1-month 12-month 1-month 12-month

January

0.2 1.5 0.2 2.4 0.3 1.5 0.4 2.8 0.5 2.2 0.9 1.9

February

0.5 1.6 0.0 1.8 0.5 2.1 0.4 2.6 0.6 2.4 -0.2 1.1

March

0.2 0.8 0.5 2.1 0.7 2.3 0.6 2.6 0.1 1.9 0.4 1.3

April

0.2 0.8 0.2 2.1 0.4 2.5 0.4 2.4 -0.2 1.4 0.0 1.6

May

0.2 -0.1 0.2 2.2 0.6 2.9 0.1 1.8 0.1 1.4 0.5 1.9

June

0.5 -0.6 -0.1 1.5 0.2 3.2 -0.1 1.6 0.3 1.8 0.0 1.7

July

0.2 -1.1 0.1 1.5 0.3 3.3 -0.2 1.1 0.2 2.1 0.1 1.6

August

0.3 -0.9 0.2 1.4 0.4 3.5 0.6 1.4 0.1 1.7 -0.2 1.3

September

0.1 -0.6 0.0 1.2 0.2 3.8 0.4 1.6 0.3 1.6

October

-0.1 0.0 0.2 1.5 -0.2 3.3 -0.1 1.7 -0.6 1.1

November

0.2 1.8 0.0 1.3 -0.3 3.0 0.0 2.0 0.1 1.2

December

-0.1 2.3 0.0 1.4 -0.4 2.7 -0.3 2.1 0.0 1.5

CPI-W

In August, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 256.691, down 0.2 percent over the month. The CPI-W increased 1.2 percent over the year.

The September 2014 Consumer Price Index for New York-Northern New Jersey-Long Island is scheduled to be released on Wednesday, October 22, 2014 at 8:30 a.m. (ET).

Technical Note

The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market basket of goods and services. The Bureau of Labor Statistics publishes CPIs for two population groups: (1) a CPI for All Urban Consumers (CPI-U) which covers approximately 88 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 29 percent of the total population. The CPI-U includes, in addition to wage earners and clerical workers, groups such as professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, and retirees and others not in the labor force.

The CPI is based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors' and dentists' services, drugs, and the other goods and services that people buy for day-to-day living. Each month, prices are collected in 87 urban areas across the country from about 4,000 housing units and approximately 26,000 retail establishments–department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments. All taxes directly associated with the purchase and use of items are included in the index.

The index measures price changes from a designated reference date (1982-84) that equals 100.0. An increase of 16.5 percent, for example, is shown as 116.5. This change can also be expressed in dollars as follows: the price of a base period "market basket" of goods and services in the CPI has risen from $10 in 1982-84 to $11.65. For further details see the CPI home page on the Internet at www.bls.gov/cpi and the BLS Handbook of Methods, Chapter 17, The Consumer Price Index, available on the Internet at www.bls.gov/opub/hom/homch17_a.htm.

In calculating the index, price changes for the various items in each location are averaged together with weights that represent their importance in the spending of the appropriate population group. Local data are then combined to obtain a U.S. city average. Because the sample size of a local area is smaller, the local area index is subject to substantially more sampling and other measurement error than the national index. In addition, local indexes are not adjusted for seasonal influences. As a result, local area indexes show greater volatility than the national index, although their long-term trends are quite similar. NOTE: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period.

The New York-Northern New Jersey-Long Island, N.Y.-N.J.-Conn.-Pa. consolidated area covered in this release is comprised of Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, and Westchester Counties in New York State; Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren Counties in New Jersey; Fairfield County and parts of Litchfield, Middlesex, and New Haven Counties in Connecticut; and Pike County in Pennsylvania.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; Federal Relay Service: 800-877-8339.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods, New York-Northern N.J.-Long Island, NY-NJ-CT-PA (1982-84=100 unless otherwise noted)(not seasonally adjusted)
Item and Group Indexes Percent change from-
June
2014
July
2014
Aug.
2014
Aug.
2013
June
2014
July
2014

Expenditure category

All items

261.350 261.498 261.075 1.3 -0.1 -0.2

All items (1967=100)

755.527 755.953 754.731

Food and beverages

250.529 252.924 251.871 2.1 0.5 -0.4

Food

250.540 252.972 251.724 2.2 0.5 -0.5

Food at home

251.449 253.161 250.762 2.0 -0.3 -0.9

Food away from home

255.908 259.400 259.709 2.4 1.5 0.1

Alcoholic beverages

246.006 247.805 249.724 1.0 1.5 0.8

Housing

277.240 277.203 277.613 2.2 0.1 0.1

Shelter

340.982 341.523 343.008 2.7 0.6 0.4

Rent of primary residence (1)

348.329 349.097 350.591 3.1 0.6 0.4

Owners' equivalent rent of residences (1) (2)

347.803 348.016 348.989 2.8 0.3 0.3

Owners' equivalent rent of primary residence (1) (2)

347.563 347.772 348.723 2.7 0.3 0.3

Fuels and utilities

208.320 206.056 202.314 1.2 -2.9 -1.8

Household energy

204.662 201.937 197.590 1.1 -3.5 -2.2

Energy services (1)

189.149 186.360 181.837 1.0 -3.9 -2.4

Electricity (1)

199.893 197.191 193.541 3.7 -3.2 -1.9

Utility (piped) gas service (1)

161.867 158.973 152.783 -5.4 -5.6 -3.9

Household furnishings and operations

118.076 117.559 117.169 -2.4 -0.8 -0.3

Apparel

123.067 123.455 126.987 0.9 3.2 2.9

Transportation

235.944 234.140 230.259 -0.9 -2.4 -1.7

Private transportation

221.243 221.363 218.292 -0.6 -1.3 -1.4

Motor fuel

295.662 294.677 281.865 -4.0 -4.7 -4.3

Gasoline (all types)

294.361 293.381 280.609 -4.1 -4.7 -4.4

Gasoline, unleaded regular (3)

297.203 295.847 281.983 -4.4 -5.1 -4.7

Gasoline, unleaded midgrade (3) (4)

295.491 295.651 286.186 -2.8 -3.1 -3.2

Gasoline, unleaded premium (3)

290.257 290.380 280.952 -3.0 -3.2 -3.2

Medical care

438.738 439.665 438.499 2.7 -0.1 -0.3

Recreation (5)

119.664 118.928 118.474 -0.8 -1.0 -0.4

Education and communication (5)

140.700 141.201 141.393 0.2 0.5 0.1

Other goods and services

398.378 399.930 397.254 0.4 -0.3 -0.7

Commodity and service group

All items

261.350 261.498 261.075 1.3 -0.1 -0.2

Commodities

195.136 195.806 194.679 0.0 -0.2 -0.6

Commodities less food and beverages

158.725 158.531 157.426 -1.5 -0.8 -0.7

Nondurables less food and beverages

203.778 204.037 201.983 -1.3 -0.9 -1.0

Durables

101.780 101.127 101.080 -1.8 -0.7 0.0

Services

318.122 317.859 317.985 2.0 0.0 0.0

Special aggregate indexes

All items less medical care

253.565 253.682 253.289 1.2 -0.1 -0.2

All items less shelter

230.277 230.259 229.021 0.5 -0.5 -0.5

Commodities less food

162.359 162.223 161.198 -1.4 -0.7 -0.6

Nondurables

229.506 230.804 229.204 0.5 -0.1 -0.7

Nondurables less food

206.708 207.050 205.203 -1.2 -0.7 -0.9

Services less rent of shelter (2)

304.227 303.003 301.525 1.1 -0.9 -0.5

Services less medical care services

308.427 308.150 308.297 2.0 0.0 0.0

Energy

242.270 240.171 232.530 -1.4 -4.0 -3.2

All items less energy

265.088 265.451 265.715 1.6 0.2 0.1

All items less food and energy

269.435 269.426 269.964 1.5 0.2 0.2

Footnotes
(1) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator.
(2) Index is on a December 1982=100 base.
(3) Special index based on a substantially smaller sample.
(4) Indexes on a December 1993=100 base.
(5) Indexes on a December 1997=100 base.

NOTE: Index applies to a month as a whole, not to any specific date.
The New York-Northern New Jersey-Long Island, NY-NJ-CT-PA consolidated area comprises the five boroughs of New York City, Nassau, Suffolk, Westchester, Rockland, Putnam, Dutchess, and Orange Counties in New York State; Bergen, Essex, Hudson, Hunterdon, Mercer, Monmouth, Middlesex, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren Counties in New Jersey; Fairfield County and parts of Litchfield, New Haven, and Middlesex Counties in Connecticut; and Pike County in Pennsylvania.