Mountain-Plains Information Office

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14-1539-KAN

Tuesday, August 19, 2014

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Consumer Price Index (CPI) for Denver-Boulder-Greeley

Prices increased 2.9 percent from the first half of 2013 to the first half of 2014


The Consumer Price Index for All Urban Consumers (CPI-U) for the Denver-Boulder-Greeley, Colo., metropolitan area increased 2.9 percent from the first half of 2013 to the first half of 2014, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Stanley W. Suchman noted that higher costs for shelter (5.0 percent) were largely responsible for the overall increase. Costs for energy were up 3.9 percent, food prices rose 2.0 percent, and the all items less food and energy index advanced 3.0 percent.

Chart 1. Over-the-year percent change in consumer price indexes, Denver, first half 2011-first half 2014

Food

Food prices rose 2.0 percent from the first half of 2013 to the first half of 2014, compared to a 1.0-percent gain in the same period one year ago. The index for food at home increased 2.2 percent and costs for food away from home were 1.3 percent higher over the year. Comparatively, from the first half of 2012 to the first half of 2013, prices for food at home were little changed (-0.1 percent) and costs for food away from home rose 2.0 percent.

Energy

The energy index, which includes motor fuel and household fuels, increased 3.9 percent from the first half of 2013 to the first half of 2014. Costs for utility (piped) gas service led the advance with an increase of 18.1 percent, with most of the gain occurring in the first part of the period. Higher prices for electricity, up 3.7 percent, also contributed to the increase. In contrast, motor fuel costs were down 0.6 percent from the first half of 2013 to the first half of 2014, with all of the decline occurring in the first half of the period.

All items less food and energy

The index for all items less food and energy rose 3.0 percent from the first half of 2013 to the first half of 2014. Shelter costs had the greatest upward impact with an increase of 5.0 percent. In contrast, the index for apparel (-6.0 percent) was among the expenditure categories registering lower prices over the year.

Due to insufficient data, the medical care component is not available for the first half of 2014.

The Denver CPI-U stood at 235.736 for the first half of 2014. This means that a market basket of goods and services that cost $100.00 during the 1982-84 base period cost $235.74 during the first half of 2014. Because metropolitan area 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 area indexes.

CPI-W

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Denver-Boulder-Greeley, Colo., metropolitan area for the first half of 2014 was 226.254. The CPI-W increased 3.0 percent from the first half of 2013 to the first half of 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 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 areas; they only measure the average change in prices for each area since the base period.

The Denver-Boulder-Greeley, Colo., Metropolitan Statistical Area includes Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson, and Weld Counties in Colorado.

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

Denver-Boulder-Greeley, CO (1982-84=100 unless otherwise noted)
Item and Group

Semiannual average indexes
Percent change to
1st half 2014 from-
1st half
2013
2nd half
2013
1st half
2014
1st half
2013
2nd half
2013

Expenditure category

All Items

229.142 232.439 235.736 2.9 1.4

All items (1967=100)

764.094 775.087 786.082

Food and beverages

216.738 216.455 220.829 1.9 2.0

Food

219.823 219.356 224.114 2.0 2.2

Food at home

218.377 217.845 223.094 2.2 2.4

Food away from home

220.939 221.361 223.785 1.3 1.1

Alcoholic beverages

191.970 194.005 194.746 1.4 0.4

Housing

207.253 213.466 217.608 5.0 1.9

Shelter

231.768 238.079 243.324 5.0 2.2

Rent of primary residence (1)

232.933 242.387 248.529 6.7 2.5

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

225.280 230.636 235.063 4.3 1.9

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

225.280 230.636 235.063 4.3 1.9

Fuels and utilities

206.493 220.722 226.215 9.6 2.5

Household energy

155.164 168.007 172.396 11.1 2.6

Energy services (1)

153.678 166.512 170.662 11.1 2.5

Electricity (1)

162.521 166.210 168.603 3.7 1.4

Utility (piped) gas service (1)

148.913 172.447 175.904 18.1 2.0

Household furnishings and operations

118.477 119.128 118.479 0.0 -0.5

Apparel

110.190 108.297 103.545 -6.0 -4.4

Transportation

262.304 263.350 268.342 2.3 1.9

Private transportation

259.886 262.446 265.961 2.3 1.3

Motor fuel

284.491 277.422 282.665 -0.6 1.9

Gasoline (all types)

282.471 275.403 280.378 -0.7 1.8

Gasoline, unleaded regular (3)

279.383 271.824 276.526 -1.0 1.7

Gasoline, unleaded midgrade (3) (4)

265.689 260.108 264.464 -0.5 1.7

Gasoline, unleaded premium (3)

282.079 276.691 283.202 0.4 2.4

Medical Care

487.877 497.149

Recreation (5)

146.821 146.665 147.096 0.2 0.3

Education and communication (5)

122.498 123.221 123.986 1.2 0.6

Other goods and services

351.975 352.556 350.399 -0.4 -0.6

Commodity and Service Group

All Items

229.142 232.439 235.736 2.9 1.4

Commodities

175.277 174.924 175.779 0.3 0.5

Commodities less food & beverages

153.428 153.049 152.114 -0.9 -0.6

Nondurables less food & beverages

190.618 189.611 188.627 -1.0 -0.5

Durables

115.684 115.978 115.440 -0.2 -0.5

Services

275.516 282.210 287.809 4.5 2.0

Special aggregate indexes:

All items less medical care

217.079 220.120 223.253 2.8 1.4

All items less shelter

229.080 230.789 233.158 1.8 1.0

Commodities less food

154.916 154.624 153.735 -0.8 -0.6

Nondurables

204.320 203.664 205.351 0.5 0.8

Nondurables less food

190.125 189.326 188.393 -0.9 -0.5

Services less rent of shelter (2)

340.142 347.270 353.477 3.9 1.8

Services less medical care services

257.799 264.247 269.693 4.6 2.1

Energy

213.201 216.577 221.507 3.9 2.3

All items less energy

231.727 234.813 238.136 2.8 1.4

All items less food and energy

234.383 238.204 241.306 3.0 1.3

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 November 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.