The Consumer Price Index for All Urban Consumers (CPI-U) in the Detroit-Warren-Dearborn area declined 0.6 percent from October to December, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the food index rose 0.4 percent and the energy index fell 12.1 percent over the bi-monthly period. The index for all items less food and energy increased 0.4 percent from October to December. Among the indexes within the all items less food and energy category, prices were higher for new and used motor vehicles and shelter, but lower for apparel and motor vehicle insurance. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the impact of seasonal influences.)

Over the past 12 months, the Detroit all items CPI-U increased 1.2 percent. (See chart 1 and table A.) The food index declined 0.6 percent and the energy index fell 4.9 percent from December 2017 to December 2018. The index for all items less food and energy rose 2.1 percent over the year. (See table 1.)

Food

Food prices increased 0.4 percent from October to December. Of the two components within 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) decreased 0.2 percent over the bi-monthly period.

Over the year, food prices in the Detroit area declined 0.6 percent. Prices for both groceries and food away from home decreased 1.0 percent and 0.1 percent, respectively, from December 2017.

Energy

The energy index for Detroit was 12.1 percent lower from October to December, largely due to gasoline prices falling 20.6 percent. Electricity costs and utility (piped) gas service costs were down 2.9 percent and 0.7 percent, respectively, during the same period.

From December 2017 to December 2018, overall energy prices declined 4.9 percent. Gasoline prices decreased 9.4 percent over the year. Over the year, utility (piped) gas service costs decreased 3.3 percent, whereas electricity costs rose 1.7 percent.

All items less food and energy

The index for all items less food and energy increased 0.4 percent from October to December. Among the index’s components, prices were higher for new and used motor vehicles (6.2 percent) and shelter (0.4 percent), but lower for apparel (-7.0 percent) and motor vehicle insurance (-3.1 percent).

Over the year, the index for all items less food and energy rose 2.1 percent. Increases in the indexes for shelter (2.9 percent); new and used motor vehicles (5.4 percent); and other goods and services (9.7 percent) were contributing factors.

Table A. Detroit-Warren-Dearborn, MI, CPI-U 2-month and 12-month percent changes, all items index, not seasonally adjusted

Month	2014		2015		2016		2017		2018
	2-month	12-month	2-month	12-month	2-month	12-month	2-month	12-month	2-month	12-month
February	1.1	0.7	-0.7	-1.8	0.3	0.9	0.9	3.0	0.3	2.1
April	1.3	2.0	1.2	-1.9	1.4	1.1	0.7	2.3	0.9	2.3
June	0.5	1.3	0.0	-2.4	1.2	2.3	0.0	1.1	1.3	3.6
August	-1.0	1.0	0.6	-0.9	-0.1	1.7	0.1	1.3	-0.6	2.8
October	-0.1	1.0	0.1	-0.7	0.2	1.7	0.9	2.0	0.0	1.9
December	-1.8	-0.1	-1.2	-0.1	-0.6	2.4	0.1	2.7	-0.6	1.2

The February 2019 Consumer Price Index for Detroit is scheduled to be released on Tuesday, March 12, 2019.

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 93 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 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 75 urban areas across the country from about 5,000 housing units and approximately 22,000 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 Detroit-Warren-Dearborn, MI, Core Based Statistical Area covered in this release is comprised of Lapeer, Livingston, Macomb, Oakland, St. Clair, and Wayne Counties in Michigan.

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.