The Consumer Price Index for All Urban Consumers (CPI-U) in the Dallas-Fort Worth area was unchanged in October and November, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Stanley W. Suchman noted that 0.7-percent increases in the indexes for both food and for all items less food and energy were balanced by a 5.8-percent decrease in energy costs. (Data in this report are not seasonally adjusted. Accordingly, short-term changes may reflect the impact of seasonal influences.)

Over the last 12 months, the CPI-U rose 4.0 percent, a sharp turn-around from the 12 months ended in November 2010 when local prices dipped 0.4 percent. (See chart 1.) Energy costs recorded the greatest increase during the last year, up 13.8 percent, but annual increases were also recorded for food (5.2 percent) and for all items less food and energy (2.7 percent).

Food

Food prices rose 0.7 percent in October and November, after increasing 1.0 percent in August and September. Among the two components of the index, prices for food at home (grocery stores) were up 0.9 percent and prices for food away from home, 0.6 percent. Within the grocery group, higher prices were noted for a variety of foods, including fresh vegetables and carbonated drinks.

From November 2010 to November 2011, the food index rose 5.2 percent, reflecting the combined effects of a 6.4-percent rise in grocery prices and a 3.7-percent increase in prices for food away from home. The 5.2-percent annual increase in food prices was the fastest advance since the year ended in November 2008 (6.0 percent).

Energy

The energy index fell 5.8 percent in October and November, the third consecutive bimonthly decline and the largest since January 2009 (-9.7 percent). Decreases in gasoline prices (-5.5 percent) and household energy costs (-6.6 percent) made nearly equal contributions to the overall energy index decline. Within the household energy category, natural gas prices dropped 27.1 percent and electricity costs fell 2.6 percent.

Over the year, the energy index advanced 13.8 percent. Although the annual gain continued in the double-digit range, it has slowed from the peak 2011 annual increases of approximately 20 percent registered from May through September. During the year ended in November 2011, the largest contributor to the energy rise was a 20.6-percent hike in gasoline prices. The cost of electricity, which registered over-the-year declines for more than two years, turned positive in October 2011, and as of November 2011, electricity prices were 6.1 percent above a year ago. In contrast, natural gas costs fell 3.7 percent during the latest 12-month period.

All items less food and energy

The index for all items less food and energy rose 0.7 percent in October and November, following a 0.5-percent rise in August and September. Among the components of the index, shelter costs rose 0.6 percent, led by a 1.0-percent rise in owners’ equivalent rent of a primary residence – the fastest two-month gain for homeowners’ costs since November 2008. Another important factor was a 4.7-percent increase in apparel costs, which reflected higher prices for men’s and boys’ clothing. Also contributing were increased costs for medical care and other goods and services, up 1.6 and 2.5 percent, respectively. Declines in the indexes for recreation (-0.8 percent) and education and communication (-0.1 percent) did little to offset these gains.

Over the year, the index for all items less food and energy increased 2.7 percent. A 2.6-percent rise in the shelter index was the leading factor in the increase. A year ago, during the 12 months ended in November 2010, shelter costs declined 1.3 percent, but have accelerated on an annual basis throughout 2011. Also contributing to the overall 2011 annual rise were higher prices for apparel and medical care, up 6.0 and 4.6 percent, respectively.

Next Release Date: The January 2012 Consumer Price Index for All Items for Dallas-Fort Worth will be released on February 17, 2012.

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 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. Each month, prices are collected in 87 urban areas across the country from about 4,000 housing units and approximately 25,000 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 Dallas-Fort Worth Consolidated Metropolitan Statistical Area (CMSA) includes Collin, Dallas, Denton, Ellis, Henderson, Hood, Hunt, Johnson, Kaufman, Parker, Rockwall, and Tarrant Counties.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; TDD message referral phone number: 1-800-877-8339.

For personal assistance or further information on Consumer Price Indexes, as well as other Bureau products, contact the Southwest Information Office at (972) 850-4800 from 8:00 a.m. to 11:00 a.m. and 1:00 p.m. to 4:00 p.m. CT.

Last Modified Date: December 16, 2011

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