U.S. Bureau of Labor Statistics

Midwest Information Office

The Cleveland-Akron, Ohio Consumer Price Index for All Urban Consumers (CPI-U) fell 3.9 percent from September to November, according to a report issued today by the U.S. Department of Labor’s Bureau of Labor Statistics. This contrasts with an increase of 0.4 percent recorded for this bimonthly period last year. The November all items CPI-U for the Cleveland-Akron area stood at 198.187 (1982-84=100). Over the past year, retail prices in the Cleveland-Akron area were up 0.2 percent. In the previous 12-month period ended in November 2007, retail prices in the Cleveland-Akron area increased 4.4 percent.

Regional Commissioner Jay A. Mousa stated that a 48.9 percent decrease in gasoline prices was the largest contributing factor in the recent bimonthly drop in the Cleveland area all items CPI-U. Declines in the components for housing, apparel, and recreation were also recorded over the two-month period. Increases in the components for food and beverages, medical care, and other goods and services partially offset these declines. Education and communication costs were little changed over the two-month period.

The transportation component declined 17.3 percent due to the 48.9 percent drop in gasoline prices. In the previous September-November period, gasoline prices rose 9.0 percent. Over the past 12 months, transportation costs fell 11.5 percent as a result of a 38.8 percent annual decrease in prices at the gasoline pumps.

The housing component fell 2.1 percent from September to November. Most of this decrease was the result of a 17.3 percent seasonal decline in the electricity index. Declines in the indexes for shelter (-0.8 percent), household furnishings and operations (-1.2 percent), and utility (piped) gas service (-3.2 percent) also contributed. Over the year, housing costs increased 0.8 percent in the Cleveland area. Most of this annual increase was the result of a 10.8 percent hike in household fuel and utilities index: utility (pipe) gas service costs increased 17.2 percent over the year and electricity costs were up 5.6 percent since last November. Household furnishings and operations costs rose 2.5 percent over-the-year. Shelter costs were down 1.4 percent over the past 12 months, partially offsetting these increases.

Apparel prices declined 1.5 percent during this bimonthly period. With the exception of 2006’s September to November increase of 9.0 percent, this component typically declines during this 2-month period. Declines ranged from 1.8 percent to 3.4 percent for this period in years 2001 to 2007. Over the past year, apparel prices were 8.3 percent higher. During the previous three November-November periods, apparel prices declined an average of 2.5 percent per year.

Recreation prices declined 0.3 percent, but were 4.0 percent higher over the year. The education and communications component was little changed during this bimonthly period and was 1.7 percent higher for the year.

The other goods and services component, which includes cigarettes and personal care products, posted a 0.5 percent gain for the two-months. On an annual basis, this component advanced 1.7 percent, a smaller increase than the 4.5 percent November-November gain posted in 2007.

The medical care component rose 0.6 percent for the bimonthly period. For the year, medical care costs were 3.3 percent higher. This latest annual gain was well below the 10.2 percent increase for the 12-month period ended in November 2007.

The food and beverages component gained 0.7 percent during this bimonthly period. The food at home index (grocery food) edged up 0.3 percent while the index for food away from home gained 0.8 percent. Overall food and beverage prices were 6.8 percent higher for the year. Grocery food costs gained 9.7 percent over the year following annual increases that averaged 3.2 percent over the previous four years. Food away from home costs rose 3.2 percent during the past 12 months, in-line with the 3.5 percent average annual increase in the prior four 12-month periods ended in November. The alcoholic beverages index rose 2.4 percent from September, but stood 6.0 percent higher for the year.

###

Scheduled release date for the December 2008 CPI: Friday, January 16, 2009

The all items CPI-U and CPI-W for the U.S. City Average and the Cleveland area are available to the public 24 hours a day, 7 days a week through the Bureau's CPI Hotline service. This recorded message also provides percent changes from the prior period and from a year earlier, as well as the scheduled release date for the next CPI issuance. The Hotline number in Cleveland is (216) 522-3852.

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. Prices are collected in 87 urban areas across the country from about 50,000 housing units and approximately 23,000 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. Prices of food, fuels, and a few other items are obtained every month in all 87 locations. Prices of most other commodities and services are collected every month in the three largest geographic areas and every other month in other areas. Prices of most goods and services are obtained by personal visits of the Bureau's trained representatives.

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. Separate indexes are also published by size of city, by region of the country, for cross-classifications of regions and population-size classes, and for 27 local areas. Area indexes do not measure differences in the level of prices among cities; they only measure the average change in prices for each area since the base period.

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.

Last Modified Date: December 16, 2008