Midwest Information Office

News Release Information

14-1320-CHI

Tuesday, July 22, 2014

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Midwest Region Consumer Price Index – June 2014

Prices in the Midwest up 0.5 percent in June and 1.7 percent higher over the year


The Consumer Price Index for All Urban Consumers (CPI-U) in the Midwest increased 0.5 percent in June, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Charlene Peiffer noted that the monthly increase was led by higher prices for electricity and motor fuel. Overall, energy costs rose 3.9 percent over the month. The indexes for food and for all items less food and energy registered little movement over the month, up 0.1 percent each.

The CPI-U for the Midwest advanced 1.7 percent from June 2013 to June 2014. Food prices increased 2.5 percent and the energy index, which includes motor fuel and household fuels, was up 1.5 percent. Excluding food and energy, the CPI-U rose 1.6 percent over the year. (See chart 1.)

Chart 1. Over-the-year change in consumer price indexes, Midwest region, June 2011-June 2014

Food

Food prices in the Midwest were little changed (0.1 percent) in June. The index for food at home rose 0.2 percent and costs for food away from home were unchanged.

From June 2013 to June 2014, the index for food increased 2.5 percent. Rising costs for food at home (2.4 percent) and food away from home (2.6 percent) both contributed to the yearly advance.

Energy

The energy index for the Midwest turned up 3.9 percent in June. The increase was led by an 11.1-percent jump in costs for electricity, reflecting a shift to seasonal rate schedules. Higher motor fuel prices (2.7 percent) also contributed to the monthly increase. In contrast, the index for utility (piped) gas service declined 3.8 percent over the month.

The energy index advanced 1.5 percent from June 2013 to June 2014. Costs for utility (piped) gas service and electricity increased 9.5 and 4.4 percent, respectively, while prices for motor fuel decreased 1.5 percent over the year.

All items less food and energy

Movements within the index for all items less food and energy in the Midwest were mixed, leaving it virtually unchanged in June (0.1 percent). Shelter (0.3 percent) was among the expenditure categories posting higher prices over the month. In contrast, expenditure categories registering lower prices included apparel (-1.2 percent) and recreation (-0.4 percent).

The index for all items less food and energy was up 1.6 percent from June 2013 to June 2014. Higher costs for shelter (1.9 percent) and medical care services (2.8 percent) led the advance.

The Midwest Consumer Price Index for All Urban Consumers (CPI-U) stood at 227.588 in June 2014. A typical market basket of goods and services that cost $100.00 in the 1982-84 base period cost $227.59 in June 2014. Because regional CPI data are not adjusted for seasonal price variation, consumers and businesses should be cautious in drawing conclusions about long-term retail price trends from short-term changes in the regional indexes.


Table A. Midwest Region CPI-U monthly and annual percent changes (not seasonally adjusted)
Month 2009 2010 2011 2012 2013 2014
Monthly Annual Monthly Annual Monthly Annual Monthly Annual Monthly Annual Monthly Annual

January

0.6 -0.3 0.5 2.9 0.5 1.9 0.6 2.8 0.1 1.3 0.5 1.4

February

0.3 -0.2 0.0 2.5 0.3 2.2 0.2 2.7 1.1 2.2 0.6 0.9

March

0.3 -0.8 0.4 2.6 0.9 2.7 1.0 2.8 0.2 1.4 0.9 1.5

April

0.2 -1.5 0.2 2.7 0.7 3.3 0.2 2.3 -0.1 1.2 0.3 1.9

May

0.4 -1.9 0.1 2.4 0.6 3.8 -0.1 1.5 0.5 1.8 0.2 1.6

June

1.1 -1.7 0.0 1.2 0.0 3.9 -0.1 1.4 0.3 2.2 0.5 1.7

July

-0.3 -2.5 0.2 1.7 0.1 3.8 0.0 1.3 -0.4 1.8

August

0.4 -1.8 0.2 1.5 0.2 3.8 0.7 1.8 0.1 1.2

September

0.0 -1.7 0.1 1.6 0.2 3.9 0.3 1.9 0.1 1.0

October

0.1 -0.2 0.0 1.5 -0.6 3.3 -0.3 2.2 -0.5 0.8

November

0.3 2.2 0.1 1.2 0.0 3.3 -0.4 1.8 -0.2 1.0

December

-0.3 3.0 0.2 1.8 -0.2 2.8 -0.2 1.8 -0.2 1.0

CPI-W

In June, the Midwest Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 223.929, up 0.5 percent over the month. The CPI-W increased 1.7 percent over the year.

____________

The July 2014 Consumer Price Index for the Midwest region is scheduled to be released on Tuesday, August 19, 2014.


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 approximately 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 Midwest region is comprised of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; Federal Relay Service: 1-800-877-8339.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods

Midwest (1982-84=100 unless otherwise noted)
Item and Group

Indexes
Percent change from-
Apr.
2014
May
2014
Jun.
2014
Jun.
2013
Apr.
2014
May
2014

Expenditure category

All Items

226.214 226.565 227.588 1.7 0.6 0.5

All items (December 1977=100)

368.062 368.634 370.298

Food and beverages

235.217 235.796 236.098 2.4 0.4 0.1

Food

234.753 235.371 235.626 2.5 0.4 0.1

Food at home

227.902 228.587 228.973 2.4 0.5 0.2

Food away from home

246.081 246.584 246.615 2.6 0.2 0.0

Alcoholic beverages

239.573 239.545 240.580 1.9 0.4 0.4

Housing

209.573 209.752 211.476 2.2 0.9 0.8

Shelter

242.539 242.980 243.648 1.9 0.5 0.3

Rent of primary residence (1)

239.399 239.665 240.135 2.1 0.3 0.2

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

246.791 246.938 247.219 1.7 0.2 0.1

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

246.790 246.934 247.215 1.7 0.2 0.1

Fuels and utilities

221.969 221.257 230.887 5.8 4.0 4.4

Household energy

188.657 187.804 197.850 6.1 4.9 5.3

Energy services (1)

194.773 194.099 205.276 6.1 5.4 5.8

Electricity (1)

187.717 190.496 211.577 4.4 12.7 11.1

Utility (piped) gas service (1)

199.075 192.180 184.944 9.5 -7.1 -3.8

Household furnishings and operations

117.666 117.602 117.637 -0.6 0.0 0.0

Apparel

123.408 123.953 122.409 2.9 -0.8 -1.2

Transportation

221.180 222.009 224.117 -0.1 1.3 0.9

Private transportation

215.775 215.903 218.103 -0.2 1.1 1.0

New and used motor vehicles (3)

99.587 99.730 99.790 -0.9 0.2 0.1

New vehicles

138.830 138.672 138.288 -0.6 -0.4 -0.3

New cars and trucks (3) (4)

98.155 98.030 97.782 -0.7 -0.4 -0.3

New cars (4)

135.565 135.266 135.026 -1.3 -0.4 -0.2

Used cars and trucks

151.405 152.542 153.240 -0.1 1.2 0.5

Motor fuel

328.037 327.636 336.564 -1.5 2.6 2.7

Gasoline (all types)

326.015 325.643 334.660 -2.0 2.7 2.8

Gasoline, unleaded regular (4)

323.402 323.033 332.202 -2.2 2.7 2.8

Gasoline, Unleaded midgrade (4) (5)

361.731 360.445 368.216 -1.2 1.8 2.2

Gasoline, unleaded premium (4)

322.546 322.555 330.780 -1.3 2.6 2.5

Medical Care

440.388 440.186 440.647 3.4 0.1 0.1

Medical care commodities

351.290 352.169 353.004 5.3 0.5 0.2

Medical care services

470.513 469.887 470.194 2.8 -0.1 0.1

Professional services

385.563 386.512 387.001 2.8 0.4 0.1

Recreation (3)

117.647 117.964 117.537 -0.6 -0.1 -0.4

Education and communication (3)

139.746 139.564 139.615 2.2 -0.1 0.0

Other goods and services

394.510 394.741 395.564 2.2 0.3 0.2

Commodity and Service Group

All Items

226.214 226.565 227.588 1.7 0.6 0.5

Commodities

187.201 187.431 187.917 0.8 0.4 0.3

Commodities less food & beverages

162.720 162.797 163.350 -0.1 0.4 0.3

Nondurables less food & beverages

217.928 218.146 219.480 0.7 0.7 0.6

Nondurables less food, beverages, and apparel

279.703 279.714 282.894 0.3 1.1 1.1

Durables

108.990 108.943 108.798 -1.3 -0.2 -0.1

Services

266.889 267.364 268.928 2.3 0.8 0.6

Rent of shelter (2)

249.147 249.594 250.288 1.9 0.5 0.3

Transportation services

285.371 288.556 288.710 2.1 1.2 0.1

Other services

323.499 323.721 324.088 1.8 0.2 0.1

Special aggregate indexes:

All items less medical care

216.079 216.456 217.506 1.6 0.7 0.5

All items less food

224.727 225.035 226.183 1.6 0.6 0.5

All items less shelter

222.751 223.073 224.241 1.6 0.7 0.5

Commodities less food

165.349 165.425 165.991 0.0 0.4 0.3

Nondurables

227.319 227.709 228.562 1.5 0.5 0.4

Nondurables less food

219.189 219.394 220.714 0.7 0.7 0.6

Nondurables less food and apparel

274.999 275.006 277.996 0.4 1.1 1.1

Services less rent of shelter (2)

301.947 302.480 305.127 2.7 1.1 0.9

Services less medical care services

251.680 252.230 253.875 2.3 0.9 0.7

Energy

249.886 249.225 258.829 1.5 3.6 3.9

All items less energy

226.304 226.764 226.908 1.8 0.3 0.1

All items less food and energy

225.461 225.894 226.017 1.6 0.2 0.1

Commodities less food and energy commodities

147.766 147.944 147.503 0.6 -0.2 -0.3

Energy commodities

325.436 324.763 332.936 -1.3 2.3 2.5

Services less energy services

276.453 277.057 277.573 2.0 0.4 0.2

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) Indexes on a December 1997=100 base.
(4) Special index based on a substantially smaller sample.
(5) Indexes on a December 1993=100 base.

Regions defined as the four Census regions. Midwest includes Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
NOTE: Index applies to a month as a whole, not to any specific date. Data not seasonally adjusted.