U.S. Bureau of Labor Statistics

Mid-Atlantic Information Office

Washington-Baltimore Consumer Price Index: November 2008 (PDF)

Retail prices in the Washington-Baltimore area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), decreased 2.5 percent from September to November, following no change in the previous two-month period, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  Sheila Watkins, the Bureau’s regional commissioner, noted that a drop in transportation prices, in particular gasoline prices, dominated the recent decline.  (See chart A.)  The November level of 138.547 (November 1996 = 100) was 2.5 percent higher than in November 2007.  Over the same period, the core inflation rate, as measured by the all items less food and energy index, rose 3.4 percent.  (See table 1.)

Chart A.  2-month and 12-month percent changes ended November 2008 for the major categories of the CPI-U for the Washington-Baltimore area, not seasonally adjusted

chart data

Dominated by a 39.5-percent two-month drop in gasoline prices, the transportation index fell 14.8 percent since September—both decreases were the largest since each series began in December 1997 and November 1996, respectively.  Gasoline prices dropped 27.3 percent since last November due to declines in the last two bimonthly periods.  The gasoline index is historically subject to rapid fluctuations; this time last year it posted an over-the-year gain of 38.0 percent and a two-month increase of 11.3 percent.  Also contributing to the drop in the transportation index were lower prices for airline fares.  The overall transportation index declined 7.4 percent since November 2007—the first 12-month decrease recorded since July 2007.

The housing index declined 0.9 percent from September to November following a 0.4-percent decrease in the previous two-month period.  The fuels and utilities index fell 3.6 percent due mostly to a 3.9-percent decline in electricity prices, although electricity prices were still up 10.6 percent over the year.  Utility (piped) gas service prices were also lower for the second consecutive bimonthly period, down 26.1 percent since July and 3.1 percent since September.  The utility gas index was still up 8.4 percent since November 2007 despite the recent declines; the overall fuels and utilities index advanced 9.3 percent over that same period.  Shelter prices fell 0.4 percent from September to November due to lower prices for other lodging away from home, including hotels and motels.  Both published components of shelter—owners’ equivalent rent of primary residence (0.3 percent) and rent of primary residence (0.5 percent)—rose over the last two months and over the year (3.6 and 5.3 percent, respectively).  Over the year, shelter prices were 3.7 percent higher.  The household furnishings and operations index declined 2.2 percent since September but rose 1.5 percent since November 2007.  Overall, the housing index was 4.1 percent higher than last year—the smallest 12-month increase since May 2006.

Education and communication prices edged down 0.3 percent over the last two months after rising 3.0 percent in the previous two-month period.  Since November 2007, the education and communication index rose 2.4 percent.

Recreation prices also edged down 0.3 percent from September to November despite higher prices for cable and satellite television and radio service and pets and pet products.  Over the last 12 months, the recreation index increased 1.8 percent.

The food and beverages index inched down 0.1 percent over the last two months after increasing 1.6 percent from May to July and 1.5 percent from July to September.  A 0.5-percent decline in food at home prices was nearly offset by a 0.4-percent advance in food away from home prices.  Both of these indexes rose since last November, up 5.5 and 5.1 percent, respectively.  Alcoholic beverages prices fell 0.4 percent over the last two months but rose 1.9 percent over the year.  The overall food and beverages index was 5.0 percent above its November 2007 level.

The remaining indexes had higher prices from September to November.  Although apparel prices typically decline from September to November, they were up 3.0 percent since September and 6.3 percent over the year. 

Medical care prices advanced 0.8 percent over the last two months and were 4.2 percent higher than a year ago.

The other goods and services index (which includes tobacco and smoking products, personal care products, personal care services, and miscellaneous personal services such as legal, funeral, and laundry and dry cleaning services) rose 0.4 percent from September to November due in large part to higher prices for haircuts and other personal care services.  Over the year, the other goods and services index advanced 5.2 percent. 

The energy index, which reflects prices for gasoline and household fuels, dropped 22.2 percent since September dominated by lower gasoline prices (-39.5 percent).  Prices for electricity; utility gas; fuel oil; and propane, kerosene, and firewood also decreased.  Over the year, energy prices were down 8.7 percent.

More than four-fifths of the two-month decrease in the overall local index came from falling commodities prices, down 5.8 percent since September and 0.3 percent since November 2007.  The services index declined 0.6 percent over the last two months but was still 4.0 percent higher over the last year. 

The CPI-U for the Washington-Baltimore area stood at 138.547 on the November 1996=100 reference base, which means that a market basket of goods and services that averaged $100.00 in November 1996 would have cost $138.55 in November. 

The Washington-Baltimore, D.C.-Md.-Va.-W.Va., Consolidated Metropolitan Statistical Area (CMSA) includes the District of Columbia; Baltimore City and the counties of Anne Arundel, Baltimore, Calvert, Carroll, Charles, Frederick, Harford, Howard, Montgomery, Prince George’s, Queen Anne’s, and Washington in Maryland; the cities of Alexandria, Fairfax, Falls Church, Fredericksburg, Manassas, and Manassas Park and the counties of Arlington, Clarke, Fairfax, Fauquier, King George, Loudoun, Prince William, Rappahannock, Spotsylvania, Stafford, and Warren in Virginia; and the counties of Berkeley and Jefferson in West Virginia.

The relative importance of a component of the CPI is its expenditure or value weight expressed as a percentage of all items within an area.  Relative importance ratios show approximately how the index population distributes expenditures when the value weights are collected and represent an estimate of how consumers would distribute their expenditures as prices change over time.  Relative importance ratios cannot be used as estimates of current spending patterns or as indicators of changing consumer expenditures in the intervals between weight revisions because consumption patterns are influenced by factors—including income, variations in climate, family size, and availability of new and different kinds of goods and services—other than price change. (See table A.)

Last Modified Date: December 16, 2008