Midwest Information Office

News Release Information

14-1565-CHI

Tuesday, August 19, 2014

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Midwest Region Consumer Price Index – July 2014

Prices in the Midwest down 0.3 percent in July but 1.8 percent higher over the year


The Consumer Price Index for All Urban Consumers (CPI-U) in the Midwest declined 0.3 percent in July after increasing in each of the previous six months, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Charlene Peiffer noted that the monthly decrease was largely attributable to lower prices for motor fuel. Overall, energy costs were 2.5 percent lower over the month. The index for food registered little movement (0.1 percent) and the all items less food and energy index was unchanged.

The CPI-U for the Midwest advanced 1.8 percent from July 2013 to July 2014. Food prices increased 2.6 percent and the energy index, which includes motor fuel and household fuels, was up 3.1 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, July 2011-July 2014

Food

Food prices in the Midwest were nearly unchanged (0.1 percent) in July. The indexes for food at home and for food away from home each also registered little movement (0.1 percent).

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

Energy

The energy index had the greatest impact on the all items index, declining 2.5 percent in July. The decrease in energy costs was attributable to motor fuel prices, which dropped 4.8 percent over the month. In contrast, the indexes for electricity and utility (piped) gas service rose 0.4 and 0.7 percent, respectively, over the month.

Despite the monthly decline, the energy index advanced 3.1 percent from July 2013 to July 2014. Costs for electricity and utility (piped) gas service increased 5.6 and 10.9 percent, respectively, while prices for motor fuel were unchanged 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 unchanged in July. Shelter (0.2 percent) and new and used motor vehicles (0.6 percent) were among the expenditure categories posting higher prices over the month. In contrast, expenditure categories registering lower prices included apparel (-2.3 percent) and household furnishings and operations (-0.3 percent).

For the fourth consecutive month, the annual increase in the all items less food and energy index was 1.6 percent. From July 2013 to July 2014, higher costs for shelter (1.9 percent), medical care services (2.7 percent), and education and communication (2.1 percent) led the advance.

The Midwest Consumer Price Index for All Urban Consumers (CPI-U) stood at 226.997 in July 2014. A typical market basket of goods and services that cost $100.00 in the 1982-84 base period cost $227.00 in July 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 -0.3 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 July, the Midwest Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 223.180, down 0.3 percent over the month. The CPI-W increased 1.8 percent over the year.

____________

The August 2014 Consumer Price Index for the Midwest region is scheduled to be released on Wednesday, September 17, 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-
May
2014
Jun.
2014
Jul.
2014
Jul.
2013
May
2014
Jun.
2014

Expenditure category

All Items

226.565 227.588 226.997 1.8 0.2 -0.3

All items (December 1977=100)

368.634 370.298 369.336

Food and beverages

235.796 236.098 236.312 2.5 0.2 0.1

Food

235.371 235.626 235.880 2.6 0.2 0.1

Food at home

228.587 228.973 229.216 2.6 0.3 0.1

Food away from home

246.584 246.615 246.886 2.5 0.1 0.1

Alcoholic beverages

239.545 240.580 240.179 1.7 0.3 -0.2

Housing

209.752 211.476 211.842 2.3 1.0 0.2

Shelter

242.980 243.648 244.121 1.9 0.5 0.2

Rent of primary residence (1)

239.665 240.135 240.720 2.1 0.4 0.2

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

246.938 247.219 247.455 1.6 0.2 0.1

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

246.934 247.215 247.452 1.6 0.2 0.1

Fuels and utilities

221.257 230.887 231.825 6.7 4.8 0.4

Household energy

187.804 197.850 198.726 7.3 5.8 0.4

Energy services (1)

194.099 205.276 206.269 7.3 6.3 0.5

Electricity (1)

190.496 211.577 212.430 5.6 11.5 0.4

Utility (piped) gas service (1)

192.180 184.944 186.149 10.9 -3.1 0.7

Household furnishings and operations

117.602 117.637 117.293 -0.1 -0.3 -0.3

Apparel

123.953 122.409 119.556 2.3 -3.5 -2.3

Transportation

222.009 224.117 220.327 0.5 -0.8 -1.7

Private transportation

215.903 218.103 214.792 0.6 -0.5 -1.5

New and used motor vehicles (3)

99.730 99.790 100.385 -0.4 0.7 0.6

New vehicles

138.672 138.288 139.057 0.3 0.3 0.6

New cars and trucks (3) (4)

98.030 97.782 98.351 0.2 0.3 0.6

New cars (4)

135.266 135.026 135.518 -0.6 0.2 0.4

Used cars and trucks

152.542 153.240 154.114 0.1 1.0 0.6

Motor fuel

327.636 336.564 320.439 0.0 -2.2 -4.8

Gasoline (all types)

325.643 334.660 318.493 -0.4 -2.2 -4.8

Gasoline, unleaded regular (4)

323.033 332.202 315.668 -0.6 -2.3 -5.0

Gasoline, Unleaded midgrade (4) (5)

360.445 368.216 354.570 1.0 -1.6 -3.7

Gasoline, unleaded premium (4)

322.555 330.780 316.518 -0.2 -1.9 -4.3

Medical Care

440.186 440.647 441.813 3.3 0.4 0.3

Medical care commodities

352.169 353.004 355.845 5.3 1.0 0.8

Medical care services

469.887 470.194 470.687 2.7 0.2 0.1

Professional services

386.512 387.001 387.211 2.6 0.2 0.1

Recreation (3)

117.964 117.537 117.721 -0.4 -0.2 0.2

Education and communication (3)

139.564 139.615 139.782 2.1 0.2 0.1

Other goods and services

394.741 395.564 394.249 1.0 -0.1 -0.3

Commodity and Service Group

All Items

226.565 227.588 226.997 1.8 0.2 -0.3

Commodities

187.431 187.917 186.374 1.1 -0.6 -0.8

Commodities less food & beverages

162.797 163.350 161.103 0.3 -1.0 -1.4

Nondurables less food & beverages

218.146 219.480 214.569 1.0 -1.6 -2.2

Nondurables less food, beverages, and apparel

279.714 282.894 276.635 0.9 -1.1 -2.2

Durables

108.943 108.798 108.941 -0.9 0.0 0.1

Services

267.364 268.928 269.273 2.3 0.7 0.1

Rent of shelter (2)

249.594 250.288 250.774 1.9 0.5 0.2

Transportation services

288.556 288.710 286.862 1.7 -0.6 -0.6

Other services

323.721 324.088 324.675 1.7 0.3 0.2

Special aggregate indexes:

All items less medical care

216.456 217.506 216.831 1.7 0.2 -0.3

All items less food

225.035 226.183 225.454 1.7 0.2 -0.3

All items less shelter

223.073 224.241 223.243 1.8 0.1 -0.4

Commodities less food

165.425 165.991 163.781 0.3 -1.0 -1.3

Nondurables

227.709 228.562 226.049 1.7 -0.7 -1.1

Nondurables less food

219.394 220.714 216.030 1.0 -1.5 -2.1

Nondurables less food and apparel

275.006 277.996 272.245 0.9 -1.0 -2.1

Services less rent of shelter (2)

302.480 305.127 305.331 2.8 0.9 0.1

Services less medical care services

252.230 253.875 254.210 2.3 0.8 0.1

Energy

249.225 258.829 252.339 3.1 1.2 -2.5

All items less energy

226.764 226.908 226.922 1.7 0.1 0.0

All items less food and energy

225.894 226.017 225.987 1.6 0.0 0.0

Commodities less food and energy commodities

147.944 147.503 147.033 0.5 -0.6 -0.3

Energy commodities

324.763 332.936 317.374 0.1 -2.3 -4.7

Services less energy services

277.057 277.573 277.849 2.0 0.3 0.1

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.

Table 2. Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W): Indexes and percent changes for selected periods

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

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

Expenditure category

All Items

222.822 223.929 223.180 1.8 0.2 -0.3

All items (December 1977=100)

360.352 362.143 360.932

Food and beverages

236.087 236.323 236.690 2.6 0.3 0.2

Food

235.753 235.948 236.373 2.7 0.3 0.2

Food at home

229.221 229.536 230.042 2.8 0.4 0.2

Food away from home

247.329 247.290 247.555 2.4 0.1 0.1

Alcoholic beverages

239.798 240.682 240.128 1.6 0.1 -0.2

Housing

205.008 206.792 207.115 2.5 1.0 0.2

Shelter

232.354 232.873 233.274 1.9 0.4 0.2

Rent of primary residence (1)

240.248 240.718 241.310 2.1 0.4 0.2

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

230.090 230.338 230.553 1.6 0.2 0.1

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

230.097 230.344 230.558 1.6 0.2 0.1

Fuels and utilities

221.990 231.677 232.587 6.5 4.8 0.4

Household energy

188.134 198.162 198.998 7.0 5.8 0.4

Energy services (1)

193.038 204.034 204.991 7.2 6.2 0.5

Electricity (1)

189.412 209.682 210.466 5.4 11.1 0.4

Utility (piped) gas service (1)

194.255 186.547 187.815 11.0 -3.3 0.7

Household furnishings and operations

116.340 116.248 115.797 -0.1 -0.5 -0.4

Apparel

121.724 120.292 117.403 1.8 -3.5 -2.4

Transportation

223.518 225.886 221.865 0.4 -0.7 -1.8

Private transportation

219.744 222.155 218.409 0.4 -0.6 -1.7

New and used motor vehicles (3)

100.563 100.671 101.214 -0.1 0.6 0.5

New vehicles

142.021 141.633 142.359 0.1 0.2 0.5

Used cars and trucks

153.203 153.914 154.795 0.1 1.0 0.6

Motor fuel

328.552 337.381 321.278 -0.1 -2.2 -4.8

Gasoline (all types)

326.419 335.327 319.195 -0.4 -2.2 -4.8

Gasoline, unleaded regular (4)

323.577 332.623 316.120 -0.7 -2.3 -5.0

Gasoline, unleaded midgrade (4) (5)

360.180 367.888 354.448 1.0 -1.6 -3.7

Gasoline, unleaded premium (4)

322.476 330.635 316.451 -0.2 -1.9 -4.3

Medical Care

445.500 445.946 447.063 3.3 0.4 0.3

Medical care commodities

346.177 347.028 349.839 5.3 1.1 0.8

Medical care services

476.575 476.845 477.243 2.7 0.1 0.1

Professional services

387.941 388.305 388.404 2.6 0.1 0.0

Recreation (3)

114.509 114.091 114.284 -0.2 -0.2 0.2

Education and communication (3)

132.575 132.561 132.718 1.8 0.1 0.1

Other goods and services

437.998 439.333 436.336 0.7 -0.4 -0.7

Commodity and Service Group

All Items

222.822 223.929 223.180 1.8 0.2 -0.3

Commodities

191.689 192.376 190.622 1.0 -0.6 -0.9

Commodities less food & beverages

169.337 170.211 167.553 0.2 -1.1 -1.6

Nondurables less food & beverages

231.177 233.121 227.226 0.6 -1.7 -2.5

Nondurables less food, beverages, and apparel

298.384 302.329 294.595 0.4 -1.3 -2.6

Durables

111.358 111.292 111.479 -0.4 0.1 0.2

Services

260.290 261.885 262.271 2.4 0.8 0.1

Rent of shelter (2)

230.781 231.301 231.700 1.9 0.4 0.2

Transportation services

284.891 284.630 283.683 1.8 -0.4 -0.3

Other services

301.725 301.891 302.401 1.6 0.2 0.2

Special aggregate indexes:

All items less medical care

214.242 215.371 214.555 1.7 0.1 -0.4

All items less food

220.230 221.501 220.541 1.7 0.1 -0.4

All items less shelter

221.832 223.160 221.994 1.7 0.1 -0.5

Commodities less food

171.632 172.510 169.897 0.2 -1.0 -1.5

Nondurables

234.491 235.613 232.736 1.4 -0.7 -1.2

Nondurables less food

231.512 233.400 227.787 0.6 -1.6 -2.4

Nondurables less food and apparel

291.653 295.325 288.221 0.4 -1.2 -2.4

Services less rent of shelter (2)

268.437 271.088 271.421 2.9 1.1 0.1

Services less medical care services

245.926 247.586 247.968 2.4 0.8 0.2

Energy

252.866 262.292 255.221 2.6 0.9 -2.7

All items less energy

220.885 220.973 221.000 1.8 0.1 0.0

All items less food and energy

218.122 218.187 218.130 1.5 0.0 0.0

Commodities less food and energy commodities

151.113 150.800 150.268 0.6 -0.6 -0.4

Energy commodities

326.724 334.978 319.277 -0.1 -2.3 -4.7

Services less energy services

269.186 269.544 269.854 2.0 0.2 0.1

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 1984=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.