The Consumer Price Index for All Urban Consumers (CPI-U) in the Chicago-Gary-Kenosha area rose 0.1 percent in October, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that food prices rose 0.8 percent and energy prices decreased 0.3 percent in October. The all items less food and energy index remained the same over the month. Among the indexes within the all items less food and energy category, prices were higher for medical care and education and communication. The indexes for apparel and new and used motor vehicles were lower over the month. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the impact of seasonal influences.)

Over the last 12 months, the Chicago area all items CPI-U rose 0.8 percent. (See chart 1 and table A.) Energy costs fell 4.4 percent over the year due to declines in the indexes for gasoline and electricity. The all items less food and energy index was 1.5 percent higher over the year. (See table 1.)

Food

Food prices increased 0.8 percent in October following a 0.3-percent decrease in September. Between the two components of the food index, prices for food at home (groceries) rose 0.9 percent, and prices for food away from home (restaurant, cafeteria, and vending purchases) increased 0.7 percent over the month. Within the food at home group, the indexes for other fresh fruits; frozen and freeze dried prepared foods; and lettuce were higher in October. In contrast, the indexes for eggs and uncooked ground beef were lower.

From October 2015 to October 2016, the food index decreased 0.2 percent. Grocery prices declined 2.7 percent over the year, while prices for food eaten away from home rose 3.5 percent.

Energy

The energy index declined 0.3 percent in October, primarily due to a 1.9-percent decrease in the electricity index. Utility (piped) gas service costs increased 0.9 percent and gasoline prices were up 0.2 percent from their September levels.

Over the year, the Chicago area energy index declined 4.4 percent. The major contributing factors in the energy index’s decline were an 8.9-percent decrease in gasoline prices and a 6.2-percent decline in the electricity index. Utility (piped) gas service costs rose 12.2 percent over the year.

All items less food and energy

The index for all items less food and energy was unchanged from its September level. Prices were higher for medical care (0.4 percent) and education and communication (0.4 percent). In contrast, prices were lower for apparel (-2.0 percent) and new and used motor vehicles.

Over the year, the index for all items less food and energy increased 1.5 percent. Annual increases in the indexes for shelter (2.8 percent) and medical care (3.8 percent) were major contributing factors. In contrast, prices were lower over the year for new and used motor vehicles and household furnishings and operations (-2.3 percent).

Table A. Chicago 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	2.1	0.2	1.2	0.9	1.2	-0.2	0.4	0.8	0.9
February	0.0	1.6	1.1	2.3	0.5	0.7	0.0	-0.2	-0.2	0.7
March	1.2	2.1	-0.1	0.9	1.1	1.9	0.7	-0.6	0.1	0.2
April	0.0	1.7	0.0	0.9	0.5	2.4	0.1	-0.9	0.6	0.7
May	-0.1	1.0	0.5	1.5	-0.1	1.8	0.3	-0.5	0.0	0.3
June	-0.1	0.9	0.1	1.7	0.4	2.0	0.2	-0.7	0.5	0.7
July	-0.2	1.1	-0.2	1.7	-0.4	1.9	-0.1	-0.5	-0.8	-0.1
August	0.6	1.5	0.1	1.1	0.1	1.9	0.4	-0.1	0.2	-0.2
September	0.3	1.6	-0.2	0.7	0.0	2.1	-0.3	-0.4	0.6	0.6
October	-0.2	1.7	-0.3	0.5	-0.4	2.0	-0.1	-0.2	0.1	0.8
November	-0.4	1.5	-0.3	0.6	-0.8	1.6	-0.4	0.2
December	-0.3	1.7	-0.3	0.5	-0.4	1.5	-0.6	0.0

The November 2016 Consumer Price Index for Chicago is scheduled to be released on Thursday, December 15, 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 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/pdf/homch17.pdf.

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 Chicago-Gary-Kenosha, Ill.-Ind.-Wis. consolidated area covered in this release is comprised of Cook, DeKalb, DuPage, Grundy, Kane, Kankakee, Kendall, Lake, McHenry, and Will Counties in Illinois; Lake and Porter Counties in Indiana; and Kenosha County in Wisconsin.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods
Chicago-Gary-Kenosha, IL-IN-WI (1982-84=100 unless otherwise noted)

Item and Group	Indexes			Percent change from-
	Aug. 2016	Sep. 2016	Oct. 2016	Oct. 2015	Aug. 2016	Sep. 2016
Expenditure category
All items	228.956	230.282	230.506	0.8	0.7	0.1
All items (1967=100)	684.025	687.987	688.657	-	-	-
Food and beverages	242.333	241.597	243.493	-0.2	0.5	0.8
Food	242.266	241.444	243.409	-0.2	0.5	0.8
Food at home	234.034	232.714	234.715	-2.7	0.3	0.9
Food away from home	248.998	248.982	250.838	3.5	0.7	0.7
Alcoholic beverages	241.621	242.156	243.025	-0.5	0.6	0.4
Housing	236.599	238.072	237.836	2.3	0.5	-0.1
Shelter	296.090	298.231	298.177	2.8	0.7	0.0
Rent of primary residence (1)	314.221	314.519	315.028	2.1	0.3	0.2
Owners' equiv. rent of residences (1) (2)	301.764	302.298	302.627	2.5	0.3	0.1
Owners' equiv. rent of primary residence (1) (2)	301.764	302.298	302.627	2.5	0.3	0.1
Fuels and utilities	197.235	199.452	198.338	2.3	0.6	-0.6
Household energy	155.478	157.802	156.634	0.1	0.7	-0.7
Energy services (1)	158.436	160.850	159.604	0.1	0.7	-0.8
Electricity (1)	152.881	152.986	150.121	-6.2	-1.8	-1.9
Utility (piped) gas service (1)	153.617	159.538	161.008	12.2	4.8	0.9
Household furnishings and operations	93.307	92.489	92.264	-2.3	-1.1	-0.2
Apparel	89.479	92.535	90.718	-0.8	1.4	-2.0
Transportation	177.796	178.641	178.374	-2.7	0.3	-0.1
Private transportation	175.155	175.559	175.340	-2.3	0.1	-0.1
Motor fuel	208.017	211.501	212.050	-9.0	1.9	0.3
Gasoline (all types)	205.974	209.420	209.910	-8.9	1.9	0.2
Gasoline, unleaded regular (3)	197.257	200.533	200.688	-9.5	1.7	0.1
Gasoline, unleaded midgrade (3) (4)	232.343	236.176	238.435	-7.1	2.6	1.0
Gasoline, unleaded premium (3)	231.797	235.995	238.051	-5.4	2.7	0.9
Medical care	476.255	480.887	482.970	3.8	1.4	0.4
Recreation (5)	105.200	107.085	107.425	-1.5	2.1	0.3
Education and communication (5)	143.579	143.526	144.041	0.3	0.3	0.4
Other goods and services	383.113	384.319	386.640	0.9	0.9	0.6
Commodity and service group
All items	228.956	230.282	230.506	0.8	0.7	0.1
Commodities	164.890	165.291	165.454	-1.8	0.3	0.1
Commodities less food & beverages	125.725	126.563	126.022	-3.1	0.2	-0.4
Nondurables less food & beverages	165.721	167.585	167.564	-1.8	1.1	0.0
Durables	88.342	88.384	87.509	-3.9	-0.9	-1.0
Services	289.687	291.916	292.198	2.3	0.9	0.1
Special aggregate indexes
All items less medical care	218.351	219.534	219.677	0.6	0.6	0.1
All items less shelter	206.327	207.375	207.696	-0.1	0.7	0.2
Commodities less food	129.930	130.768	130.258	-2.9	0.3	-0.4
Nondurables	204.511	205.134	206.041	-1.0	0.7	0.4
Nondurables less food	170.779	172.579	172.608	-1.7	1.1	0.0
Services less rent of shelter (2)	297.792	300.212	300.870	1.7	1.0	0.2
Services less medical care services	275.577	277.543	277.743	2.2	0.8	0.1
Energy	175.553	178.322	177.821	-4.4	1.3	-0.3
All items less energy	235.883	237.087	237.381	1.2	0.6	0.1
All items less food and energy	235.555	237.132	237.122	1.5	0.7	0.0
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 December 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.
- Data not available. Note: Index applies to a month as a whole, not to any specific date.