South Region Consumer Price Index:  November 2008 (PDF)

The Consumer Price Index for All Urban Consumers (CPI-U) for the South declined 2.2 percent in November to 205.559 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  Sheila Watkins, the Bureau’s regional commissioner, noted that this was the second consecutive record monthly decrease since the reporting of monthly changes began in January 1987.  Lower prices for transportation were responsible for the majority of the decline.  The energy index decreased 18.9 percent over the month—the largest one-month decline since the reporting of monthly changes began in January 1978, while food costs were unchanged.  Over the same period, the core inflation rate, as measured by the all items less food and energy index, inched down 0.1 percent.

Chart A. 1-month and 12-month percent changes ended November 2008 for the major categories of the CPI-U for the South region, not seasonally adjusted

chart data

Over the last 12 months, prices in the South rose 1.0 percent, as higher costs for 6 of the 8 categories were partially offset by decreases in the remaining 2 categories, in particular transportation costs.  Energy costs in the region declined 12.7 percent, while food prices increased 6.2 percent since last November.  Over the same period, the core inflation rate, as measured by the all items less food and energy index, advanced 2.0 percent.

Among the major categories, the transportation index declined 11.5 percent in November, dominated by a 32.0-percent drop in motor fuel prices.  The recent decrease in the transportation index was the largest one-month decline since the reporting of monthly changes began in January 1987.  Over the year, transportation costs decreased 10.6 percent due largely to a 29.9-percent decline in motor fuel prices.

The housing index decreased 0.3 percent over the month due primarily to lower fuels and utilities prices which fell 1.8 percent.  The recent decline in the fuels and utilities index was led by a 2.2-percent decrease in electricity costs and a 2.6-percent decrease in utility (piped) gas service prices.  Costs for household furnishings and operations declined 0.4 percent over the month.  The shelter index, which includes rent of primary residence, lodging away from home, owners’ equivalent rent of primary residence, and tenants’ and household insurance, was unchanged during the month.  Since November 2007, the housing index rose 3.6 percent in the South.  Higher prices for shelter (2.7 percent) and fuels and utilities (10.3 percent) were largely responsible for the 12-month increase in the housing index.  Costs for household furnishings and operations were also higher over the year, advancing 1.9 percent.

Apparel costs declined as they typically do in November, down 0.3 percent.  Over the year, the apparel index decreased 1.4 percent. 

Prices for recreation inched down 0.1 percent over the month.  Since November 2007, the recreation index increased 2.2 percent.

The food and beverages index was unchanged in November, as a 0.3 percent decrease in costs for food at home was offset by increases in costs for both food away from home (0.4 percent) and alcoholic beverages (0.1 percent).  Since November 2007, the food and beverages index advanced 6.1 percent.  Prices for food at home rose 7.3 percent over the year, and food away from home and alcoholic beverages increased 4.9 percent and 3.6 percent, respectively.

The remaining categories had higher prices since October.  The index for medical care increased 0.3 percent over the month due to higher costs for medical care commodities (0.7 percent) and medical care services (0.1 percent).  Over the year, the medical care index rose 2.8 percent, as prices increased for medical care services (3.3 percent) and medical care commodities (1.5 percent).

The other goods and services index (which includes tobacco and smoking products, personal care products and services, and miscellaneous personal goods) advanced 0.3 percent over the month to a level 3.6 percent higher than a year ago.

Prices for education and communication inched up 0.1 percent over the month.  Since November 2007, this index increased 3.1 percent.

Population size groups

Over the month, consumer prices in the South declined 1.9 percent in the largest metropolitan areas, those with 1.5 million or more residents (Size Class A).  Prices decreased 2.2 percent in the mid-size areas, those with populations between 50,000 and 1.5 million (Size Class B/C), and declined 3.0 percent in the smallest areas, those with populations of less than 50,000 (Size Class D).  Over the past 12 months, consumer prices in the South advanced 1.4 percent in the largest areas (Size Class A) and 0.6 percent in the mid-sized areas (Size Class B/C).  In the smallest areas (Size Class D), prices increased 2.0 percent over the year.

Technical Note

The Bureau of Labor Statistics (BLS) has updated the consumption expenditure weights in the Consumer Price Index for All Urban Consumers (CPI-U) and Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to the 2005-06 period.  The updated expenditure weights for these indexes replace the 2003-2004 weights that were introduced effective with the January 2006 CPI release. As originally announced by BLS in December 1998, CPI expenditure weights will continue to be updated at two year intervals.

The CPI program completed its conversion to Computer Assisted Data Collection (CADC).  Due to the efficiencies gained from conversion to CADC, BLS has extended data collection to cover the entire month, beginning with data for January 2004.  CPI data collection is scheduled in terms of business days – weekdays excluding holidays.  Formerly, data collection covered three pricing periods, each comprising six business days in most months and five days in November and December.  Consequently, the last day of scheduled data collection was usually the 18th business day of the month.  This allowed time during the end of the month for the mailing of paper schedules back to the Washington Office and the data entry of the information in these schedules.  Starting in January 2004, the three pricing periods now have variable lengths, between six and eight business days long.  The third pricing period normally will end on the last business day of the month.

Local area CPI indexes are by-products of the national CPI program.  Because each local index is a small subset of the national index, it has a smaller sample size and is, therefore, subject to substantially more sampling and measurement error than the national index, although their long-term trends are quite similar.  The Bureau of Labor Statistics strongly urges users to consider adopting the national average CPI for use in escalator clauses.

We encourage users interested in learning more about changes to the CPI to contact the Bureau of Labor Statistics. Information on the Consumer Price Index and other surveys are available on our Web site at www.bls.gov. Current and historical BLS data are also posted on our Web site at www.bls.gov/ro3/. If you have additional questions, you can contact the Mid-Atlantic information office directly by dialing (215) 597-3282. Information from the Consumer Price Index program is available to sensory impaired individuals upon request. Voice phone: 202-691-5200, Federal Relay Services: 1-800-877-8339.