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15-55-KAN
January 16, 2015

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Consumer Price Index, Midwest Region – December 2014

Prices in the Midwest down 0.7 percent in December but 0.7 percent higher over the year

The Consumer Price Index for All Urban Consumers (CPI-U) in the Midwest was down 0.7 percent in December, following declines of 0.5 percent in October and 0.6 percent in November, the U.S. Bureau of Labor Statistics reported today. The monthly decrease was largely attributable to a 14.0-percent drop in motor fuel prices. Overall, the energy index declined 6.5 percent. The index for food rose 0.3 percent while the index for all items less food and energy decreased 0.2 percent over the month.

The CPI-U for the Midwest advanced 0.7 percent in 2014. This marks the third time since the series began in 1967 that prices have increased less than 1.0 percent in a calendar year–prices declined 0.3 percent in 2008 and were up 0.6 percent in 1986. Food prices increased 3.5 percent in 2014 and the energy index, which includes motor fuel and household fuels, was down 8.8 percent. Excluding food and energy, the CPI-U rose 1.4 percent from December 2013 to December 2014. (See chart 1.)

 Chart 1. Over-the-year change in consumer price indexes, Midwest region, December 2011-December 2014

Food

Food prices in the Midwest increased 0.3 percent in December. Higher costs for food at home and for food away from home, each up 0.3 percent, contributed to the monthly advance.

From December 2013 to December 2014, the index for food was up 3.5 percent led by a 3.4-percent rise in costs for food at home. Prices for food away from home contributed to the increase with a gain of 3.7 percent; this was the largest calendar year increase in this index since 2008.

Energy

The energy index registered its sixth consecutive monthly decline, falling 6.5 percent, and had the greatest downward impact on the all items index in December. The monthly decrease in energy costs was largely attributable to a 14.0-percent drop in motor fuel prices. Compared to their recent peaks in June 2014, energy prices have dropped 21.8 percent and motor fuel prices have fallen 33.3 percent. In contrast, electricity prices rose 1.5 percent and costs for utility (piped) gas service increased 3.2 percent in December 2014.

The index for energy fell 8.8 percent in 2014 led by a drop of 20.7 percent in motor fuel prices; the largest calendar year declines since 2008 for these indexes. The motor fuel index recorded over-the-year decreases in all but 3 months of 2014. Moderating the overall decline in energy costs, electricity prices advanced 4.9 percent and costs for utility (piped) gas service were 10.3 percent higher over the year.

All items less food and energy

The index for all items less food and energy for the Midwest declined 0.2 percent in December. Expenditure categories registering lower prices over the month included apparel (-3.6 percent) and used cars and trucks (-1.7 percent). In contrast, medical care and recreation, each up 0.2 percent, were among the expenditure categories posting higher prices over the month.

The index for all items less food and energy was up 1.4 percent from December 2013 to December 2014–the same increase as in the prior calendar year. Higher costs for shelter (2.1 percent) and medical care (3.3 percent) led the advance. Within medical care, the medical care commodities index (6.4 percent) recorded the largest calendar year increase since 1991, while the medical care services index (2.4 percent) posted the smallest calendar year gain in the history of the index.

The Midwest Consumer Price Index for All Urban Consumers (CPI-U) stood at 222.821 in December 2014. A typical market basket of goods and services that cost $100.00 in the 1982-84 base period cost $222.82 in December 2014. Because regional CPI data are not adjusted for seasonal price variation, consumers and businesses should be cautious in drawing conclusions about long-term retail price trends from short-term changes in the regional indexes.

CPI-W

In December, the Midwest Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 217.963, down 0.9 percent over the month. The CPI-W increased 0.4 percent over the year.

Table A. Midwest Region CPI-U monthly and annual percent changes (not seasonally adjusted)
Month 2009 2010 2011 2012 2013 2014
Monthly Annual Monthly Annual Monthly Annual Monthly Annual Monthly Annual Monthly Annual

January

0.6 -0.3 0.5 2.9 0.5 1.9 0.6 2.8 0.1 1.3 0.5 1.4

February

0.3 -0.2 0.0 2.5 0.3 2.2 0.2 2.7 1.1 2.2 0.6 0.9

March

0.3 -0.8 0.4 2.6 0.9 2.7 1.0 2.8 0.2 1.4 0.9 1.5

April

0.2 -1.5 0.2 2.7 0.7 3.3 0.2 2.3 -0.1 1.2 0.3 1.9

May

0.4 -1.9 0.1 2.4 0.6 3.8 -0.1 1.5 0.5 1.8 0.2 1.6

June

1.1 -1.7 0.0 1.2 0.0 3.9 -0.1 1.4 0.3 2.2 0.5 1.7

July

-0.3 -2.5 0.2 1.7 0.1 3.8 0.0 1.3 -0.4 1.8 -0.3 1.8

August

0.4 -1.8 0.2 1.5 0.2 3.8 0.7 1.8 0.1 1.2 -0.2 1.6

September

0.0 -1.7 0.1 1.6 0.2 3.9 0.3 1.9 0.1 1.0 0.1 1.6

October

0.1 -0.2 0.0 1.5 -0.6 3.3 -0.3 2.2 -0.5 0.8 -0.5 1.6

November

0.3 2.2 0.1 1.2 0.0 3.3 -0.4 1.8 -0.2 1.0 -0.6 1.2

December

-0.3 3.0 0.2 1.8 -0.2 2.8 -0.2 1.8 -0.2 1.0 -0.7 0.7

The January 2015 Consumer Price Index for the Midwest region is scheduled to be released on Thursday, February 26, 2015.


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 approximately 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 4,000 housing units and approximately 26,000 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/homch17_a.htm.

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 areas; they only measure the average change in prices for each area since the base period.

The Midwest region is comprised of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; Federal Relay Service: 1-800-877-8339

 

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods

Midwest (1982-84=100 unless otherwise noted)
Item and Group

 
Indexes
 
Percent change from-
Oct.
2014
Nov.
2014
Dec.
2014
Dec.
2013
Oct.
2014
Nov.
2014

Expenditure category

 
 

All Items

225.793 224.396 222.821 0.7 -1.3 -0.7

All items (December 1977=100)

367.378 365.104 362.542      

Food and beverages

238.702 238.235 238.848 3.3 0.1 0.3

Food

238.338 237.754 238.502 3.5 0.1 0.3

Food at home

231.420 229.824 230.585 3.4 -0.4 0.3

Food away from home

249.774 250.916 251.640 3.7 0.7 0.3

Alcoholic beverages

241.488 242.830 241.346 1.0 -0.1 -0.6

Housing

210.644 210.352 210.686 2.2 0.0 0.2

Shelter

245.395 245.477 245.502 2.1 0.0 0.0

Rent of primary residence (1)

243.638 244.282 244.632 2.6 0.4 0.1

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

249.403 249.784 249.958 1.7 0.2 0.1

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

249.395 249.775 249.951 1.7 0.2 0.1

Fuels and utilities

217.402 215.342 218.569 5.5 0.5 1.5

Household energy

183.375 181.187 184.385 5.9 0.6 1.8

Energy services (1)

189.452 186.970 190.767 6.6 0.7 2.0

Electricity (1)

195.822 191.367 194.159 4.9 -0.8 1.5

Utility (piped) gas service (1)

169.684 170.881 176.334 10.3 3.9 3.2

Household furnishings and operations

116.742 116.376 115.787 -1.2 -0.8 -0.5

Apparel

126.181 123.037 118.655 -1.6 -6.0 -3.6

Transportation

211.191 205.782 196.890 -6.0 -6.8 -4.3

Private transportation

205.861 200.239 191.399 -6.2 -7.0 -4.4

New and used motor vehicles (3)

99.102 98.517 98.346 -0.7 -0.8 -0.2

New vehicles

138.857 139.254 139.677 0.5 0.6 0.3

New cars and trucks (3) (4)

98.225 98.499 98.806 0.5 0.6 0.3

New cars (4)

135.026 135.543 136.115 -0.3 0.8 0.4

Used cars and trucks

148.634 144.778 142.324 -4.4 -4.2 -1.7

Motor fuel

283.662 260.787 224.340 -20.7 -20.9 -14.0

Gasoline (all types)

281.701 258.605 222.214 -20.9 -21.1 -14.1

Gasoline, unleaded regular (4)

278.555 255.229 218.865 -21.3 -21.4 -14.2

Gasoline, Unleaded midgrade (4) (5)

313.840 289.819 247.863 -20.0 -21.0 -14.5

Gasoline, unleaded premium (4)

283.904 262.977 229.751 -18.3 -19.1 -12.6

Medical Care

443.915 444.814 445.585 3.3 0.4 0.2

Medical care commodities

358.977 360.929 361.396 6.4 0.7 0.1

Medical care services

472.359 472.833 473.715 2.4 0.3 0.2

Professional services

386.863 386.869 386.698 1.8 0.0 0.0

Recreation (3)

117.180 116.780 116.968 0.5 -0.2 0.2

Education and communication (3)

140.252 139.825 139.531 1.0 -0.5 -0.2

Other goods and services

394.814 394.513 394.717 0.5 0.0 0.1
 

Commodity and Service Group

 
 

All Items

225.793 224.396 222.821 0.7 -1.3 -0.7

Commodities

184.638 181.955 178.370 -1.7 -3.4 -2.0

Commodities less food & beverages

157.669 154.116 148.847 -4.8 -5.6 -3.4

Nondurables less food & beverages

208.644 201.987 191.442 -6.6 -8.2 -5.2

Nondurables less food, beverages, and apparel

262.662 253.719 239.170 -8.1 -8.9 -5.7

Durables

107.792 107.056 106.551 -1.8 -1.2 -0.5

Services

268.587 268.450 268.852 2.4 0.1 0.1

Rent of shelter (2)

252.061 252.147 252.083 2.0 0.0 0.0

Transportation services

288.383 290.106 289.221 2.9 0.3 -0.3

Other services

324.764 324.126 324.173 1.4 -0.2 0.0
 

Special aggregate indexes:

 
 

All items less medical care

215.471 213.964 212.278 0.5 -1.5 -0.8

All items less food

223.654 222.125 220.172 0.3 -1.6 -0.9

All items less shelter

221.093 219.123 216.928 0.2 -1.9 -1.0

Commodities less food

160.451 157.005 151.808 -4.6 -5.4 -3.3

Nondurables

224.025 220.260 214.935 -1.6 -4.1 -2.4

Nondurables less food

210.472 204.221 194.133 -6.2 -7.8 -4.9

Nondurables less food and apparel

259.584 251.523 238.109 -7.4 -8.3 -5.3

Services less rent of shelter (2)

302.347 301.946 302.904 2.7 0.2 0.3

Services less medical care services

253.362 253.182 253.549 2.4 0.1 0.1

Energy

227.634 216.469 202.495 -8.8 -11.0 -6.5

All items less energy

228.145 227.746 227.440 1.7 -0.3 -0.1

All items less food and energy

226.984 226.618 226.116 1.4 -0.4 -0.2

Commodities less food and energy commodities

147.884 146.828 145.572 -0.5 -1.6 -0.9

Energy commodities

282.335 260.486 225.032 -20.3 -20.3 -13.6

Services less energy services

278.934 279.054 279.085 2.1 0.1 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) Indexes on a December 1997=100 base.
(4) Special index based on a substantially smaller sample.
(5) Indexes on a December 1993=100 base.
 

Regions defined as the four Census regions. Midwest includes Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
NOTE: Index applies to a month as a whole, not to any specific date. Data not seasonally adjusted.
 

Table 2. Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W): Indexes and percent changes for selected periods

Midwest (1982-84=100 unless otherwise noted)
Item and Group

 
Indexes
 
Percent change from-
Oct.
2014
Nov.
2014
Dec.
2014
Dec.
2013
Oct.
2014
Nov.
2014

Expenditure category

 
 

All Items

221.564 219.886 217.963 0.4 -1.6 -0.9

All items (December 1977=100)

358.318 355.605 352.495      

Food and beverages

239.224 238.781 239.338 3.4 0.0 0.2

Food

238.965 238.395 239.080 3.6 0.0 0.3

Food at home

232.383 230.840 231.515 3.6 -0.4 0.3

Food away from home

250.624 251.948 252.648 3.7 0.8 0.3

Alcoholic beverages

241.719 243.295 241.812 0.8 0.0 -0.6

Housing

205.914 205.682 206.164 2.3 0.1 0.2

Shelter

234.900 235.125 235.306 2.1 0.2 0.1

Rent of primary residence (1)

244.248 244.892 245.286 2.6 0.4 0.2

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

232.410 232.768 232.969 1.7 0.2 0.1

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

232.414 232.772 232.975 1.7 0.2 0.1

Fuels and utilities

218.050 215.993 219.178 5.5 0.5 1.5

Household energy

183.681 181.511 184.674 5.8 0.5 1.7

Energy services (1)

188.353 185.911 189.589 6.5 0.7 2.0

Electricity (1)

194.320 190.113 192.669 4.7 -0.8 1.3

Utility (piped) gas service (1)

170.717 171.846 177.632 10.4 4.1 3.4

Household furnishings and operations

115.358 114.948 114.258 -1.3 -1.0 -0.6

Apparel

124.337 121.454 117.288 -1.3 -5.7 -3.4

Transportation

211.450 204.898 194.759 -7.2 -7.9 -4.9

Private transportation

208.103 201.450 191.321 -7.3 -8.1 -5.0

New and used motor vehicles (3)

99.419 98.400 97.870 -1.7 -1.6 -0.5

New vehicles

142.205 142.633 143.063 0.4 0.6 0.3

Used cars and trucks

149.279 145.413 142.955 -4.4 -4.2 -1.7

Motor fuel

284.690 261.684 225.180 -20.6 -20.9 -13.9

Gasoline (all types)

282.625 259.435 222.983 -20.8 -21.1 -14.1

Gasoline, unleaded regular (4)

279.285 255.873 219.488 -21.2 -21.4 -14.2

Gasoline, unleaded midgrade (4) (5)

313.769 289.763 247.730 -20.0 -21.0 -14.5

Gasoline, unleaded premium (4)

284.074 263.124 229.935 -18.2 -19.1 -12.6

Medical Care

449.157 449.958 450.786 3.3 0.4 0.2

Medical care commodities

353.084 354.712 355.343 6.4 0.6 0.2

Medical care services

478.820 479.266 480.157 2.4 0.3 0.2

Professional services

388.097 388.092 387.930 1.9 0.0 0.0

Recreation (3)

113.929 113.608 113.750 0.7 -0.2 0.1

Education and communication (3)

132.523 132.103 131.794 0.3 -0.6 -0.2

Other goods and services

436.820 436.448 437.049 0.4 0.1 0.1
 

Commodity and Service Group

 
 

All Items

221.564 219.886 217.963 0.4 -1.6 -0.9

Commodities

188.232 185.142 181.034 -2.1 -3.8 -2.2

Commodities less food & beverages

163.039 158.836 152.744 -5.6 -6.3 -3.8

Nondurables less food & beverages

219.285 211.530 199.315 -7.8 -9.1 -5.8

Nondurables less food, beverages, and apparel

277.847 267.135 250.045 -9.4 -10.0 -6.4

Durables

110.030 108.988 108.310 -2.0 -1.6 -0.6

Services

261.519 261.428 261.968 2.4 0.2 0.2

Rent of shelter (2)

233.299 233.527 233.619 2.0 0.1 0.0

Transportation services

286.751 288.544 288.068 3.3 0.5 -0.2

Other services

301.869 301.269 301.171 1.1 -0.2 0.0
 

Special aggregate indexes:

 
 

All items less medical care

212.806 211.040 209.019 0.1 -1.8 -1.0

All items less food

218.164 216.287 213.894 -0.3 -2.0 -1.1

All items less shelter

219.209 216.837 214.145 -0.3 -2.3 -1.2

Commodities less food

165.524 161.454 155.460 -5.4 -6.1 -3.7

Nondurables

229.849 225.612 219.550 -2.2 -4.5 -2.7

Nondurables less food

220.348 213.085 201.438 -7.3 -8.6 -5.5

Nondurables less food and apparel

273.063 263.413 247.696 -8.7 -9.3 -6.0

Services less rent of shelter (2)

268.096 267.655 268.647 2.8 0.2 0.4

Services less medical care services

247.088 246.967 247.483 2.4 0.2 0.2

Energy

230.043 218.160 202.801 -9.8 -11.8 -7.0

All items less energy

222.283 221.854 221.576 1.7 -0.3 -0.1

All items less food and energy

219.140 218.739 218.259 1.2 -0.4 -0.2

Commodities less food and energy commodities

150.848 149.647 148.382 -0.7 -1.6 -0.8

Energy commodities

284.077 261.876 226.120 -20.3 -20.4 -13.7

Services less energy services

271.194 271.413 271.540 2.1 0.1 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 1984=100 base.
(3) Indexes on a December 1997=100 base.
(4) Special index based on a substantially smaller sample.
(5) Indexes on a December 1993=100 base.
 

Regions defined as the four Census regions. Midwest includes Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
NOTE: Index applies to a month as a whole, not to any specific date. Data not seasonally adjusted.
 

 

Last Modified Date: Friday, January 16, 2015