The Consumer Price Index for All Urban Consumers (CPI-U) in the Boston-Cambridge-Newton area increased 0.3 percent in July, the U.S. Bureau of Labor Statistics reported today.  Regional Commissioner Deborah A. Brown noted that this was mainly attributable to higher prices within all items less food and energy, up 0.3 percent and to a lesser extent higher food prices, up 0.7 percent. Lower energy prices particularly offset the overall increase. (Data in this report are not seasonally adjusted. Accordingly, bimonthly changes may reflect the impact of seasonal influences.)

Over the last 12 months, the Boston CPI-U rose 3.4 percent. The increase was largely attributable to higher prices within all items less food and energy up 2.7 percent and to a lesser extent higher energy prices paid by area consumers, up 14.8 percent(See chart 1.).

Food

Food prices edged up 0.7 percent since May, mainly due to higher food at home and restaurant prices up 0.7 percent each. Higher food at home prices were mainly driven by higher prices for fruits and vegetables; and nonalcoholic beverages and beverage materials which was mainly offset by other food at home prices.

Food prices increased 1.4 percent over the year, mainly due to higher food away from home prices, up 2.2 percent, and to a lesser extent, food at home prices, up 1.0 percent.

Energy

The energy index decreased 1.0 percent over the two months, mainly driven by lower electricity prices, down 2.5 percent and to a lesser extent, utility piped gas prices down 1.3 percent.

Energy prices were up 14.8 percent from a year ago, largely attributable to gasoline prices, up 27.6 percent and to a lesser extent electricity prices, up 4.6 percent.

All items less food and energy

The index for all items less food and energy increased from May (0.3 percent) mainly due to higher shelter costs, up 0.6 percent which was offset by lower apparel costs. Within shelter, higher prices in owners’ equivalent rent of residences, up 0.5 percent and lodging away from home drove the increase. Higher recreation and new and used motor vehicles costs also contributed to the increase, up 2.2 percent and 3.1 percent respectively.

Over the year, the index for all items less food and energy rose 2.7 percent, with higher shelter costs being the main driver of the increase, up 4.3 percent. Within shelter, higher costs for owners’ equivalent rent of residences, up 4.0 percent and rent of primary residence, up 4.8 percent led the increase. To a lesser extent, higher prices for education and communication, up 4.6 percent, also contributed to the increase.

 CPI-W

In July, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 274.186. The CPI-W increased 0.2 percent over two months and increased 3.5 percent over the year.

The September 2018 Consumer Price Index for Boston-Cambridge-Newton is scheduled to be released on Thursday, October 11, 2018, at 8:30 a.m. (ET).

Technical Note

The Boston-Cambridge-Newton, Mass.-N.H. Core Based Statistical Area covered in this release is comprised of Essex, Middlesex, Norfolk, Plymouth, Suffolk Counties in Massachusetts; Rockingham, Strafford Counties in New Hampshire.

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