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14-1682-CHI

Wednesday, September 17, 2014

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Consumer Price Index, Detroit-Ann Arbor-Flint – August 2014


The Consumer Price Index for All Urban Consumers (CPI-U) in the Detroit-Ann Arbor-Flint area declined 1.0 percent from June to August, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Charlene Peiffer noted that the energy index decreased 6.1 percent while the food index edged up 0.1 percent over the bi-monthly period. The index for all items less food and energy declined 0.4 percent from June to August. Among the indexes within the all items less food and energy category, prices were lower for airline fares, recreation, and household furnishings and operations. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the impact of seasonal influences.)

Over the past 12 months the Detroit all items CPI-U rose 1.0 percent. The energy index fell 1.6 percent over the year due to annual declines in prices for gasoline and electricity. The index for all items less food and energy rose 1.3 percent over the year.

Chart 1. Over-the-year percent change in CPI-U, Detroit-Ann Arbor-Flint

Food

Food prices edged up 0.1 percent from June to August following a 0.5-percent decline over the previous bi-monthly period. Between the two components of the food index, prices for food at home (groceries) fell 0.4 percent and prices for food away from home (restaurant, cafeteria, and vending purchases) were higher by 0.8 percent. Grocery prices were up 1.7 percent from August a year ago, while prices for food away from home were 2.4 percent higher. From August 2013 to August 2014, overall food prices rose 2.0 percent in the Detroit area.

Energy

The energy index for Detroit fell 6.1 percent from June to August. Declines in the categories for gasoline (-10.5 percent) and utility (piped) gas service (-0.9 percent) were contributing factors. Electricity costs edged up 0.2 percent from June to August.

From August 2013 to August 2014, overall energy prices decreased 1.6 percent. Prices for gasoline and electricity fell 4.6 percent and 1.7 percent, respectively, over the year. In contrast, costs for utility (piped) gas service were up 7.1 percent compared to last August.

All items less food and energy

The index for all items less food and energy fell 0.4 percent from June to August. Among the index’s components, prices were lower for airline fares, recreation (-1.6 percent), and household furnishings and operations (-2.2 percent). In contrast prices for education and communication rose 1.8 percent from June to August.

Over the year, the index for all items less food and energy rose 1.3 percent. Annual increases in costs for shelter (3.2 percent) and education and communication (4.4 percent) were contributing factors.

____________

The October 2014 Consumer Price Index for Detroit is scheduled to be released on November 20, 2014, at 8:30 a.m. (ET).


Table A. Percent Changes in the CPI-U, Detroit-Ann Arbor-Flint, Mich. (not seasonally adjusted)
Expenditure Category Percent changes from preceding 2 months 12 mo. ended Aug. '14
2013 2014
Aug. Oct. Dec. Feb. Apr. June Aug.

All items

-0.7 -0.1 -0.7 1.1 1.3 0.5 -1.0 1.0

Food & beverages

0.4 -0.2 1.1 0.3 1.1 -0.2 0.0 2.0

Food

0.3 -0.2 1.1 0.4 1.2 -0.5 0.1 2.0

Housing

-0.7 0.3 0.6 0.8 0.2 0.8 0.1 2.8

Apparel

3.3 0.1 -6.9 7.2 6.0 -3.0 -2.0 0.7

Transportation

-2.8 -1.6 -3.2 2.4 3.6 2.1 -4.2 -1.2

Medical care

1.7 0.3 0.5 0.8 0.3 0.2 -1.1 0.9

Recreation

-3.6 -0.9 -2.9 -0.1 1.6 -1.0 -1.6 -5.0

Education & communication

1.3 2.0 -0.4 -0.2 0.9 0.2 1.8 4.4

Other goods & services

0.1 -0.1 0.8 0.4 0.4 -0.3 -3.0 -1.8

Special Indexes

Energy

-8.4 -2.8 -3.0 1.4 4.8 4.7 -6.1 -1.6

All items less food & energy

0.3 0.3 -0.6 1.1 0.8 0.1 -0.4 1.3

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 Detroit-Ann Arbor-Flint, Mich. consolidated area covered in this release is comprised of Genesee, Lapeer, Lenawee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, and Wayne Counties in Michigan.

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

Detroit-Ann Arbor-Flint, MI (1982-84=100 unless otherwise noted)
Item and Group

Indexes
Percent change from-
Jun.
2014
Jul.
2014
Aug.
2014
Aug.
2013
Jun.
2014
Jul.
2014

Expenditure category

All items

224.482 - 222.284 1.0 -1.0 -

All items (1967=100)

667.254 - 660.720 - - -

Food and beverages

217.552 - 217.464 2.0 0.0 -

Food

217.502 - 217.647 2.0 0.1 -

Food at home

211.553 210.920 210.719 1.7 -0.4 -0.1

Food away from home

226.584 - 228.343 2.4 0.8 -

Alcoholic beverages

212.223 - 209.079 2.1 -1.5 -

Housing

200.703 - 200.984 2.8 0.1 -

Shelter

224.335 225.413 224.946 3.2 0.3 -0.2

Rent of primary residence (1)

225.570 226.199 226.751 2.9 0.5 0.2

Owners' equiv. rent of residences (1) (2)

223.000 223.236 223.732 2.5 0.3 0.2

Owners' equiv. rent of primary residence (1) (2)

223.000 223.236 223.732 2.5 0.3 0.2

Fuels and utilities

243.858 - 246.458 3.0 1.1 -

Household energy

195.765 195.979 195.328 1.9 -0.2 -0.3

Energy services (1)

197.792 197.916 197.257 1.8 -0.3 -0.3

Electricity (1)

214.156 214.630 214.552 -1.7 0.2 0.0

Utility (piped) gas service (1)

168.062 167.806 166.567 7.1 -0.9 -0.7

Household furnishings and operations

121.372 - 118.746 -0.6 -2.2 -

Apparel

126.397 - 123.888 0.7 -2.0 -

Transportation

260.165 - 249.119 -1.2 -4.2 -

Private transportation

259.529 - 249.291 -1.0 -3.9 -

Motor fuel

341.878 327.790 306.186 -4.0 -10.4 -6.6

Gasoline (all types)

339.829 325.769 304.199 -4.6 -10.5 -6.6

Gasoline, unleaded regular (3)

349.355 334.712 311.983 -5.0 -10.7 -6.8

Gasoline, unleaded midgrade (3) (4)

379.218 364.104 341.983 -3.4 -9.8 -6.1

Gasoline, unleaded premium (3)

318.133 305.888 288.071 -1.7 -9.4 -5.8

Medical care

402.872 - 398.474 0.9 -1.1 -

Recreation (5)

114.525 - 112.637 -5.0 -1.6 -

Education and communication (5)

144.835 - 147.496 4.4 1.8 -

Other goods and services

405.260 - 393.085 -1.8 -3.0 -

Commodity and service group

All items

224.482 - 222.284 1.0 -1.0 -

Commodities

186.057 - 181.811 0.1 -2.3 -

Commodities less food & beverages

169.108 - 162.931 -0.9 -3.7 -

Nondurables less food & beverages

213.881 - 202.492 -2.1 -5.3 -

Durables

118.107 - 117.243 1.2 -0.7 -

Services

264.664 - 264.411 1.7 -0.1 -

Special aggregate indexes

All items less medical care

217.405 - 215.297 1.1 -1.0 -

All items less shelter

227.912 - 224.483 0.2 -1.5 -

Commodities less food

170.819 - 164.729 -0.8 -3.6 -

Nondurables

216.044 - 210.137 -0.3 -2.7 -

Nondurables less food

213.752 - 202.882 -2.0 -5.1 -

Services less rent of shelter (2)

321.609 - 320.209 0.3 -0.4 -

Services less medical care services

255.039 - 255.191 1.9 0.1 -

Energy

265.197 259.050 249.058 -1.6 -6.1 -3.9

All items less energy

222.739 - 221.999 1.4 -0.3 -

All items less food and energy

224.277 - 223.361 1.3 -0.4 -

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.

- Data not available
NOTE: Index applies to a month as a whole, not to any specific date.