The Consumer Price Index for All Urban Consumers (CPI-U) in the Midwest was down 0.5 percent in July following four consecutive monthly increases, the U.S. Bureau of Labor Statistics reported today. The July decrease was largely attributable to a 10.2-percent drop in motor fuel costs. The index for all items less food and energy, down 0.2 percent, also contributed to the monthly decline. Food prices were little changed (-0.1 percent) over the month. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the impact of seasonal influences.)

The CPI-U for the Midwest advanced 0.4 percent from July 2015 to July 2016. (See chart 1 and table A.) The energy index, which includes motor fuel and household fuels, fell 10.4 percent, and prices for food were unchanged. Excluding food and energy, the CPI-U rose 1.8 percent over the year. (See table 1.)

Food

Food prices in the Midwest registered little movement (-0.1 percent) in July. The index for food at home was 0.2 percent lower, while costs for food away from home (0.1 percent) were virtually unchanged over the month.

From July 2015 to July 2016, the index for food was unchanged. Prices for food at home registered their tenth consecutive over-the-year decrease, down 1.8 percent since July 2015. This is the largest annual decline in the food at home index since November 2009. Costs for food away from home rose 2.7 percent over the year, offsetting the decrease in the food at home index.

Energy

The energy index turned down 3.9 percent in July following four consecutive monthly advances. The decrease in energy costs was largely attributable to a 10.2-percent decline in motor fuel prices. Conversely, electricity prices rose 0.5 percent and utility (piped) gas service costs advanced 6.4 percent over the month.

Energy costs fell 10.4 percent from July 2015 to July 2016, led by a 19.1-percent drop in motor fuel prices. Lower costs for utility (piped) gas service (-3.5 percent) and electricity (-0.8 percent) also contributed to the decline.

All items less food and energy

The index for all items less food and energy for the Midwest decreased 0.2 percent in July. Expenditure categories registering lower prices over the month included apparel (-2.6 percent), recreation (-0.3 percent), and new and used motor vehicles (-0.2 percent).

The index for all items less food and energy was up 1.8 percent from July 2015 to July 2016. A 2.7-percent rise in shelter costs led the advance. Prices for medical care services had the next largest upward impact with a 4.3-percent increase.

The Midwest Consumer Price Index for All Urban Consumers (CPI-U) stood at 226.777 in July 2016. A typical market basket of goods and services that cost $100.00 in the 1982-84 base period cost $226.78 in July 2016.

CPI-W

In July, the Midwest Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 221.072, down 0.5 percent over the month. The CPI-W was unchanged over the year.

Table A. Midwest region CPI-U 1-month and 12-month percent changes, all items index, not seasonally adjusted

Month	2012		2013		2014		2015		2016
	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month
January	0.6	2.8	0.1	1.3	0.5	1.4	-0.6	-0.3	0.3	0.8
February	0.2	2.7	1.1	2.2	0.6	0.9	0.3	-0.5	0.0	0.4
March	1.0	2.8	0.2	1.4	0.9	1.5	0.6	-0.9	0.6	0.5
April	0.2	2.3	-0.1	1.2	0.3	1.9	0.1	-1.1	0.4	0.8
May	-0.1	1.5	0.5	1.8	0.2	1.6	0.4	-0.8	0.4	0.8
June	-0.1	1.4	0.3	2.2	0.5	1.7	0.5	-0.7	0.6	0.8
July	0.0	1.3	-0.4	1.8	-0.3	1.8	0.0	-0.5	-0.5	0.4
August	0.7	1.8	0.1	1.2	-0.2	1.6	0.0	-0.3
September	0.3	1.9	0.1	1.0	0.1	1.6	-0.3	-0.8
October	-0.3	2.2	-0.5	0.8	-0.5	1.6	-0.1	-0.3
November	-0.4	1.8	-0.2	1.0	-0.6	1.2	-0.5	-0.2
December	-0.2	1.8	-0.2	1.0	-0.7	0.7	-0.6	0.0

The August 2016 Consumer Price Index for the Midwest region is scheduled to be released on Friday, September 16, 2016.

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 approximately 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 areas; 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.

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