Prices in the Anchorage Area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), were unchanged in the first half of 2017, the U.S. Bureau of Labor Statistics reported today. (See table A.) Assistant Commissioner for Regional Operations Richard Holden noted that during this period higher gasoline prices helped counter lower shelter prices. (Data in this report are not seasonally adjusted. Accordingly, six-month-to-six-month changes may reflect seasonal influences.)

Over the last 12 months, the CPI-U advanced 0.7 percent.  (See chart 1 and table A.) Energy prices jumped 12.5 percent, largely the result of an increase in the price of gasoline. The index for all items less food and energy was unchanged over the year. (See table 1.)

Food

Food prices rose 0.4 percent in the first half of 2017. (See table 1.) Prices for food at home increased 0.6 percent, and prices for food away from home inched up 0.1 percent for the same period.

Over the year, food prices declined 0.2 percent. Prices for food at home decreased 0.8 percent since a year ago, but prices for food away from home advanced 0.7 percent.

Energy

The energy index advanced 6.3 percent since the second half of 2016. The increase was mainly due to higher prices for gasoline (8.9 percent). Prices for electricity advanced by 6.6 percent, and prices for natural gas service rose 1.9 percent in the same period.

Energy prices increased 12.5 percent over the year, largely due to higher prices for gasoline (17.4 percent). Prices paid for electricity rose 9.7 percent, and prices for natural gas service increased 8.8 percent during the past year.

All items less food and energy

The index for all items less food and energy declined 0.6 percent in the latest six-month period. Lower prices for education and communication (-2.7 percent), apparel (-1.6 percent), and shelter (-0.7 percent) were partially offset by higher prices for household furnishings and operations (1.0 percent) and recreation, (0.4 percent).

Over the year, the index for all items less food and energy was unchanged. Components showing an increase included recreation (1.8 percent), household furnishings and operations (1.6 percent), and medical care (1.3 percent). Prices declined in the education and communication (-2.3 percent), apparel (-1.1 percent), and shelter (-0.2 percent) components.

Table A. Anchorage CPI-U semi-annual and annual percent changes (not seasonally adjusted)

Month	2012		2013		2014		2015		2016		2017
	Semi-annual	Annual	Semi-annual	Annual	Semi-annual	Annual	Semi-annual	Annual	Semi-annual	Annual	Semi-annual	Annual
First Half	1.3	2.5	2.1	2.7	0.4	1.9	0.1	1.1	0.1	-0.1	0.0	0.7
Second Half	0.7	2.0	1.4	3.5	1.0	1.4	-0.2	-0.1	0.8	0.9

The Second Half 2017 Consumer Price Index for the Anchorage is scheduled to be released mid-January 2018.

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 89 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 28 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 6,000 housing units and approximately 24,000 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/cpi/.

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 Anchorage, AK. metropolitan area covered in this release is comprised of Anchorage Borough in the State of Alaska.

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 for semiannual averages and percent changes for selected periods

Anchorage, AK (1982-84=100 unless otherwise noted)

Item and Group	Semiannual average indexes			Percent change to 1st half 2017 from-
	1st half 2016	2nd half 2016	1st half 2017	1st half 2016	2nd half 2016
Expenditure category
All items	216.999	218.660	218.616	0.7	0.0
All items (1967=100)	579.200	583.635	583.517	-	-
Food and beverages	209.180	208.183	209.188	0.0	0.5
Food	214.832	213.553	214.481	-0.2	0.4
Food at home	212.663	209.617	210.977	-0.8	0.6
Food away from home	216.907	218.136	218.448	0.7	0.1
Alcoholic beverages	151.952	153.657	155.367	2.2	1.1
Housing	201.878	203.505	203.427	0.8	0.0
Shelter	205.557	206.548	205.134	-0.2	-0.7
Rent of primary residence	201.447	201.915	200.300	-0.6	-0.8
Owners' equiv. rent of residences(1)	206.865	208.873	206.284	-0.3	-1.2
Owners' equiv. rent of primary residence(1)	206.865	208.873	206.284	-0.3	-1.2
Fuels and utilities	293.793	303.873	315.618	7.4	3.9
Household energy	303.583	316.332	330.329	8.8	4.4
Energy services	336.680	352.161	368.028	9.3	4.5
Electricity	291.672	300.074	319.964	9.7	6.6
Utility (piped) gas service	398.532	425.662	433.649	8.8	1.9
Household furnishings and operations	127.695	128.502	129.758	1.6	1.0
Apparel	162.976	163.859	161.230	-1.1	-1.6
Transportation	205.643	208.146	210.427	2.3	1.1
Private transportation	206.410	212.469	223.073	8.1	5.0
Motor fuel	186.614	201.509	219.453	17.6	8.9
Gasoline (all types)	187.591	202.191	220.277	17.4	8.9
Gasoline, unleaded regular(2)	181.438	195.790	213.509	17.7	9.1
Gasoline, unleaded midgrade(2)(3)	178.918	192.336	209.310	17.0	8.8
Gasoline, unleaded premium(2)	187.287	200.829	217.860	16.3	8.5
Medical care	526.418	534.701	533.511	1.3	-0.2
Recreation(4)	117.865	119.503	120.039	1.8	0.4
Education and communication(4)	118.291	118.767	115.579	-2.3	-2.7
Other goods and services	331.509	336.779	333.862	0.7	-0.9
Commodity and service group
All Items	216.999	218.660	218.616	0.7	0.0
Commodities	175.334	176.195	178.962	2.1	1.6
Commodities less food & beverages	157.423	159.196	162.815	3.4	2.3
Nondurables less food & beverages	196.657	200.521	204.450	4.0	2.0
Durables	123.997	124.251	127.512	2.8	2.6
Services	252.744	255.076	252.716	0.0	-0.9
Special aggregate indexes
All items less medical care	205.777	207.224	207.215	0.7	0.0
All items less shelter	220.382	222.403	223.144	1.3	0.3
Commodities less food	157.556	159.330	162.872	3.4	2.2
Nondurables	204.021	205.259	207.612	1.8	1.1
Nondurables less food	193.728	197.403	201.139	3.8	1.9
Services less rent of shelter(1)	328.494	333.188	329.238	0.2	-1.2
Services less medical care services	235.251	237.225	235.151	0.0	-0.9
Energy	238.520	252.275	268.219	12.5	6.3
All items less energy	216.168	217.100	216.086	0.0	-0.5
All items less food and energy	216.725	218.031	216.688	0.0	-0.6
Footnotes (1) Index is on a December 1982=100 base. (2) Special index based on a substantially smaller sample. (3) Indexes on a December 1993=100 base. (4) Indexes on a December 1997=100 base.
- Data not available.