The Consumer Price Index for All Urban Consumers (CPI-U) in the Detroit-Warren-Dearborn area increased 1.0 percent from August to October, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the index for all items less food and energy and the food index increased 1.4 percent and 1.2 percent, respectively. The energy index declined 2.4 percent over the bi-monthly period. Among the indexes within the all items less food and energy category, prices were higher for shelter and medical care. (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 2.4 percent. (See chart 1 and table A.) The indexes for all items less food and energy and for food increased 2.8 percent and 2.9 percent, respectively, from October 2018 to October 2019. The index for energy decreased 1.6 percent over the year. (See table 1.)

Food

Food prices were up 1.2 percent from August to October. Of the two components within the food index, prices for food at home (groceries) increased 1.6 percent and prices for food away from home (restaurant, cafeteria, and vending purchases) rose 0.7 percent over the bi-monthly period.

Over the year, food prices in the Detroit area rose 2.9 percent. Prices for groceries increased 2.9 percent and prices for food away from home increased 3.0 percent.

Energy

The energy index for Detroit was down 2.4 percent from August to October. Among the index’s components, prices were lower for gasoline (-5.0 percent) and electricity (-0.6 percent). Prices for utility (piped) gas service rose 1.6 percent.

From October 2018 to October 2019, overall energy prices declined 1.6 percent. Gasoline prices decreased 8.6 percent, while the indexes for electricity and for utility (piped) gas service increased 9.3 percent and 4.5 percent, respectively.

All items less food and energy

The index for all items less food and energy increased 1.4 percent from August to October. Among the index’s components, prices were higher for shelter (1.9 percent) and medical care (3.0 percent).

Over the year, the index for all items less food and energy rose 2.8 percent. Prices were higher for shelter (3.7 percent), medical care (5.0 percent), and new and used motor vehicles (6.2 percent).

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

Month	2015		2016		2017		2018		2019
	2-month	12-month	2-month	12-month	2-month	12-month	2-month	12-month	2-month	12-month
February	-0.7	-1.8	0.3	0.9	0.9	3.0	0.3	2.1	0.4	1.2
April	1.2	-1.9	1.4	1.1	0.7	2.3	0.9	2.3	0.6	1.0
June	0.0	-2.4	1.2	2.3	0.0	1.1	1.3	3.6	0.4	0.1
August	0.6	-0.9	-0.1	1.7	0.1	1.3	-0.6	2.8	0.6	1.4
October	0.1	-0.7	0.2	1.7	0.9	2.0	0.0	1.9	1.0	2.4
December	-1.2	-0.1	-0.6	2.4	0.1	2.7	-0.6	1.2

The December 2019 Consumer Price Index for Detroit is scheduled to be released on Tuesday, January 14, 2020.

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.

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