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Wednesday, January 20, 2016

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Consumer Price Index, Minneapolis-St. Paul — Second Half 2015

Local prices down 0.2 percent over the year

The Consumer Price Index for All Urban Consumers (CPI-U) in the Minneapolis-St. Paul area declined 0.2 percent from the second half of 2014 to the second half of 2015, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Charlene Peiffer noted that the all items less food and energy index was 1.2 percent higher compared to its second half 2014 level as price increases were noted in the categories for shelter, medical care, and other goods and services. Food prices rose 1.5 percent over the year while the index for energy decreased 16.3 percent. (See chart 1.)

 Chart 1.  Over-the-year percent change in CPI-U, Minneapolis, second half 2012-second half 2015

Food

The 1.5 percent rise in food prices over the year was attributed to both a 1.9 percent increase in costs for food eaten away from home (restaurant, cafeteria, and vending purchases) and a 1.0 percent increase in costs for grocery food items. In the previous annual period (second half 2013 to second half 2014), food prices in the Minneapolis-St. Paul area rose 1.1 percent.

Energy

All three major components of the energy index were down compared to their second half 2014 levels and contributed to the 16.3 percent annual decline in energy costs in the Minneapolis-St. Paul area. Gasoline prices experienced the largest decline, down 23.2 percent followed by a 15.4 percent decrease in costs for utility (piped) gas service. Electricity costs were 0.5 percent lower than their second half 2014 levels. Energy costs declined 2.5 percent in the prior annual period.

All items less food and energy

The 1.2 percent over the year increase in the all items less food and energy index was primarily due to a 2.8 percent annual gain in shelter costs. Medical care (2.8 percent) and other goods and services (1.5 percent) also experienced increases and contributed to the rise in the all items less food and energy index.

The first half 2016 Consumer Price Index for Minneapolis-St. Paul is scheduled to be released on Friday, July 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 Minneapolis-St. Paul, Minn.-Wis. metropolitan area covered in this release is comprised of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright Counties and Pierce and St. Croix Counties 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 for semiannual averages and percent changes for selected periods

Minneapolis-St. Paul, MN-WI (1982-84=100 unless otherwise noted)
Item and Group

 
Semiannual average indexes
 
Percent change to
2nd half 2015 from-
2nd half
2014
1st half
2015
2nd half
2015
2nd half
2014
1st half
2015

Expenditure category

 
 

All items

232.261 229.374 231.760 -0.2 1.0

All items (1967=100)

729.887 720.816 728.311 - -

Food and beverages

269.087 269.800 272.282 1.2 0.9

Food

257.699 258.628 261.487 1.5 1.1

Food at home

249.897 250.130 252.407 1.0 0.9

Food away from home

270.405 271.699 275.526 1.9 1.4

Alcoholic beverages

374.102 371.538 368.029 -1.6 -0.9

Housing

206.512 207.453 209.754 1.6 1.1

Shelter

235.834 238.532 242.483 2.8 1.7

Rent of primary residence (1)

239.272 241.790 245.933 2.8 1.7

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

245.178 248.032 252.307 2.9 1.7

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

245.178 248.032 252.307 2.9 1.7

Fuels and utilities

205.736 199.068 198.092 -3.7 -0.5

Household energy

190.855 181.137 177.839 -6.8 -1.8

Energy services (1)

193.827 184.380 181.648 -6.3 -1.5

Electricity (1)

244.957 237.679 243.625 -0.5 2.5

Utility (piped) gas service (1)

151.414 139.447 128.061 -15.4 -8.2

Household furnishings and operations

122.776 122.957 121.526 -1.0 -1.2

Apparel

151.638 133.291 137.800 -9.1 3.4

Transportation

211.727 196.981 198.554 -6.2 0.8

Private transportation

193.433 179.202 181.630 -6.1 1.4

Motor fuel

253.345 193.152 194.019 -23.4 0.4

Gasoline (all types)

253.723 193.562 194.835 -23.2 0.7

Gasoline, unleaded regular (3)

256.809 194.863 195.629 -23.8 0.4

Gasoline, unleaded midgrade (3) (4)

255.731 197.470 199.182 -22.1 0.9

Gasoline, unleaded premium (3)

299.341 232.817 237.912 -20.5 2.2

Medical care

481.873 492.003 495.139 2.8 0.6

Recreation (5)

122.120 121.481 122.565 0.4 0.9

Education and communication (5)

137.984 136.597 138.004 0.0 1.0

Other goods and services

357.792 359.731 363.260 1.5 1.0
 

Commodity and service group

 
 

All Items

232.261 229.374 231.760 -0.2 1.0

Commodities

192.611 184.388 185.166 -3.9 0.4

Commodities less food & beverages

156.496 145.657 145.813 -6.8 0.1

Nondurables less food & beverages

209.261 187.283 188.881 -9.7 0.9

Durables

109.561 107.992 106.987 -2.3 -0.9

Services

267.083 268.972 272.786 2.1 1.4
 

Special aggregate indexes

 
 

All items less medical care

221.066 217.557 219.912 -0.5 1.1

All items less shelter

231.783 226.501 228.203 -1.5 0.8

Commodities less food

164.643 153.762 153.839 -6.6 0.1

Nondurables

238.872 226.432 228.443 -4.4 0.9

Nondurables less food

221.195 199.726 201.109 -9.1 0.7

Services less rent of shelter (2)

317.040 318.114 321.785 1.5 1.2

Services less medical care services

248.574 249.919 253.713 2.1 1.5

Energy

225.657 189.981 188.764 -16.3 -0.6

All items less energy

236.580 236.798 239.567 1.3 1.2

All items less food and energy

233.562 233.674 236.431 1.2 1.2

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.
 

 

Last Modified Date: Wednesday, January 20, 2016