U.S. Bureau of Labor Statistics

New York-New Jersey Information Office

For release: Thursday, March 17, 2011

NYLS -7479

Technical information: Martin Kohli (646) 264-3620 • BLSInfoNY@bls.gov • www.bls.gov/ro2
Media contact: Michael L. Dolfman (212) 337-2500

CONSUMER PRICE INDEX, NEW YORK-NORTHERN NEW JERSEY – FEBRUARY 2011

Area prices up 0.5 percent over the month and 2.1 percent over the year

Prices in the greater New York area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased 0.5 percent in February, after rising 0.3 percent in January, the U.S. Bureau of Labor Statistics reported today. The February increase was the largest change in 11 months. (See table A.) Regional Commissioner Michael L. Dolfman attributed the rise to higher prices for food, gasoline, and recreation, together with a seasonal increase in apparel. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect seasonal influences.)

For the 12 months ended in February 2011, the CPI-U advanced 2.1 percent, the highest rate posted since May 2010. (See chart 1.) The index for all items less food and energy increased 1.4 percent.

Food
Over the month, the food index rose 0.4 percent, after rising 0.9 percent in January. Grocery prices increased 0.5 percent, with higher prices reported for chicken, cheese, tomatoes, snacks, and frozen prepared foods. Prices for food away from home rose 0.3 percent. (See table 1.)

From February 2010 to February 2011, food prices advanced 2.8 percent, with food at home increasing 3.8 percent and food away from home, 1.6 percent.

Energy
In February, the energy index increased 1.2 percent. Gasoline prices rose 1.5 percent, following four monthly increases which ranged from 3.0 to 5.0 percent. Household energy posted a 0.8-percent increase, with higher prices reported for fuel oil. Natural gas prices also rose, advancing 1.2 percent for the second consecutive month. These increases outweighed a 1.1-percent decline in electricity charges.

Over the year, energy prices climbed 8.5 percent, with gasoline prices jumping 19.0 percent. Household energy prices were up 1.0 percent, primarily attributable to higher fuel oil charges.

All items less food and energy
The index for all items less food and energy rose 0.4 percent in February, after ticking up 0.1 percent in January. With the release of spring lines, apparel prices posted a 3.2-percent rise. Other index components with February increases included recreation (1.1 percent) and medical care (0.4 percent). Higher prices were also reported for airline fares and motor vehicle insurance. In contrast, shelter was unchanged in February. In only 2 of the last 6 months has the shelter index risen.

Over the year, the index for all items less food and energy rose 1.4 percent, primarily reflecting increases for shelter (0.9 percent), apparel (4.8 percent), and medical care (2.7 percent). In contrast, the recreation index was down 0.8 percent.

CPI-W
In February, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 239.750, up 0.6 percent over the month. The CPI-W increased 2.4 percent over the year.

The March 2011 Consumer Price Index for New York-Northern New Jersey is scheduled to be released on Friday, April 15, 2011 at 8:30 a.m. (EDT).

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 87 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 32 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 25,000 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; TDD message referral phone number: 1-800-877-8339.

For personal assistance or further information on Consumer Price Indexes, as well as other Bureau products, contact the New York-New Jersey Information Office at (646) 264-3600 from 9:00 a.m. to 12:30 p.m. and 1:30 p.m. to 4:30 p.m. ET.

Last Modified Date: April 15, 2011