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16-1798-CHI
Friday, September 16, 2016

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Consumer Price Index, Detroit-Ann Arbor-Flint — August 2016

Local prices increase 1.7 percent over the year

The Consumer Price Index for All Urban Consumers (CPI-U) in the Detroit-Ann Arbor-Flint area decreased 0.1 percent from June to August, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the energy index declined 4.5 percent, while the food index decreased 0.1 percent over the bi-monthly period. The index for all items less food and energy increased 0.4 percent from June to August. Among the indexes within the all items less food and energy category, prices were higher for apparel, medical care, and recreation. (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 1.7 percent. (See chart 1 and table A.) The energy index decreased 8.1 percent over the year, primarily due to declines in gasoline prices. The index for all items less food and energy rose 3.0 percent over the year. (See table 1.)

Food

Food prices decreased 0.1 percent from June to August following a 0.9-percent decrease over the previous bi-monthly period. Of the two components within the food index, prices for food at home (groceries) declined 0.2 percent, and prices for food away from home (restaurant, cafeteria, and vending purchases) rose 0.1 percent.

Over the year, food prices in the Detroit area increased 0.8 percent. Grocery prices were 1.4 percent higher, and prices for food away from home decreased 0.1 percent over the year.

Energy

The energy index for Detroit declined 4.5 percent from June to August. Prices fell for gasoline (12.5 percent) while the indexes for electricity and utility (piped) gas service rose 4.0 percent and 1.7 percent, respectively.

From August 2015 to August 2016, overall energy prices decreased 8.1 percent. Gasoline prices fell 15.9 percent, and utility (piped) gas service costs were 5.8 percent lower. In contrast, electricity costs rose 4.3 percent over the year.

All items less food and energy

The index for all items less food and energy increased 0.4 percent from June to August. Among the index’s components, prices were higher for apparel (6.3 percent), medical care (1.0 percent), and recreation (0.5 percent).

Over the year, the index for all items less food and energy rose 3.0 percent. Among the index’s components, shelter (3.0 percent), recreation (7.0 percent), and medical care (5.4 percent) recorded increases.

Table A. Detroit CPI-U 2-month and 12-month percent changes, all items index, not seasonally adjusted
Month 2012 2013 2014 2015 2016
2-month 12-month 2-month 12-month 2-month 12-month 2-month 12-month 2-month 12-month

February

0.6 3.9 1.1 1.9 1.1 0.7 -0.7 -1.8 0.3 0.9

April

0.6 2.1 0.0 1.3 1.3 2.0 1.2 -1.9 1.4 1.1

June

-0.8 0.4 1.2 3.3 0.5 1.3 0.0 -2.4 1.2 2.3

August

1.2 1.5 -0.7 1.3 -1.0 1.0 0.6 -0.9 -0.1 1.7

October

0.5 2.4 -0.1 0.7 -0.1 1.0 0.1 -0.7    

December

-0.7 1.4 -0.7 0.8 -1.8 -0.1 -1.2 -0.1    

The October 2016 Consumer Price Index for Detroit is scheduled to be released on Thursday, November 17, 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 Detroit-Ann Arbor-Flint, Mich. consolidated area covered in this release is comprised of Genesee, Lapeer, Lenawee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, 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.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods
Detroit-Ann Arbor-Flint, MI (1982-84=100 unless otherwise noted)
Item and Group

 
Indexes
 
Percent change from-
Jun.
2016
Jul.
2016
Aug.
2016
Aug.
2015
Jun.
2016
Jul.
2016

Expenditure category

 
 

All items

224.070 - 223.898 1.7 -0.1 -

All items (1967=100)

666.029 - 665.518 - - -

Food and beverages

221.584 - 221.572 0.8 0.0 -

Food

221.332 - 221.205 0.8 -0.1 -

Food at home

212.142 211.279 211.745 1.4 -0.2 0.2

Food away from home

235.789 - 236.124 -0.1 0.1 -

Alcoholic beverages

218.683 - 220.350 1.5 0.8 -

Housing

205.190 - 205.981 2.4 0.4 -

Shelter

233.743 233.867 233.350 3.0 -0.2 -0.2

Rent of primary residence (1)

239.401 239.804 240.984 3.8 0.7 0.5

Owners' equiv. rent of residences (1) (2)

229.752 229.997 231.122 3.1 0.6 0.5

Owners' equiv. rent of primary residence (1) (2)

229.752 229.997 231.122 3.1 0.6 0.5

Fuels and utilities

237.012 - 244.720 1.0 3.3 -

Household energy

183.856 183.508 189.521 -0.4 3.1 3.3

Energy services (1)

188.560 188.021 194.502 0.4 3.2 3.4

Electricity (1)

225.408 223.606 234.403 4.3 4.0 4.8

Utility (piped) gas service (1)

137.523 138.370 139.832 -5.8 1.7 1.1

Household furnishings and operations

115.555 - 116.119 -0.1 0.5 -

Apparel

109.351 - 116.193 -1.5 6.3 -

Transportation

234.835 - 228.414 -2.9 -2.7 -

Private transportation

233.580 - 227.219 -3.4 -2.7 -

Motor fuel

230.304 207.758 201.697 -15.9 -12.4 -2.9

Gasoline (all types)

229.203 206.614 200.580 -15.9 -12.5 -2.9

Gasoline, unleaded regular (3)

231.234 207.142 200.971 -16.8 -13.1 -3.0

Gasoline, unleaded midgrade (3) (4)

268.383 247.848 240.657 -13.1 -10.3 -2.9

Gasoline, unleaded premium (3)

238.964 220.386 215.159 -10.6 -10.0 -2.4

Medical care

416.582 - 420.652 5.4 1.0 -

Recreation (5)

122.117 - 122.728 7.0 0.5 -

Education and communication (5)

147.371 - 147.787 2.2 0.3 -

Other goods and services

402.672 - 402.889 0.6 0.1 -
 

Commodity and service group

 
 

All items

224.070 - 223.898 1.7 -0.1 -

Commodities

174.282 - 172.583 -1.5 -1.0 -

Commodities less food & beverages

149.627 - 147.235 -3.3 -1.6 -

Nondurables less food & beverages

178.893 - 174.711 -4.5 -2.3 -

Durables

115.391 - 114.665 -0.8 -0.6 -

Services

275.247 - 276.500 3.7 0.5 -
 

Special aggregate indexes

 
 

All items less medical care

216.344 - 215.972 1.3 -0.2 -

All items less shelter

223.262 - 223.174 1.1 0.0 -

Commodities less food

152.225 - 149.932 -3.1 -1.5 -

Nondurables

200.155 - 197.955 -1.6 -1.1 -

Nondurables less food

181.547 - 177.679 -4.0 -2.1 -

Services less rent of shelter (2)

333.839 - 337.215 4.3 1.0 -

Services less medical care services

265.815 - 266.913 3.5 0.4 -

Energy

208.394 198.235 199.048 -8.1 -4.5 0.4

All items less energy

228.362 - 229.146 2.7 0.3 -

All items less food and energy

230.214 - 231.166 3.0 0.4 -

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.
 

 

Last Modified Date: Friday, September 16, 2016