Prices in the Houston-The Woodlands-Sugar Land area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), advanced 0.5 percent for the two months ending in June 2023, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Michael Hirniak noted that the all items less food and energy index increased 0.6 percent in May and June, mainly due to higher costs for shelter. The food index rose 0.8 percent, while the energy index fell 1.3 percent over the past two months. (Data in this report are not seasonally adjusted. Accordingly, bi-monthly changes may reflect seasonal influences.)

Over the last 12 months, the CPI-U advanced 1.7 percent. The index for all items less food and energy rose 5.4 percent, and food prices increased 7.7 percent over the year. Energy prices decreased 33.1 percent, with all components contributing to the decline. (See chart 1 and table 1.)

  

View Chart Data

Chart 1. Over-the-year percent change in CPI-U, Houston-The Woodlands-Sugar Land, TX, June 2020–June 2023

Month	All items	All items less food and energy
Jun 2020	-0.2	0.8
Aug 2020	-0.2	0.3
Oct 2020	-0.1	0.3
Dec 2020	0.7	0.7
Feb 2021	1.0	0.0
Apr 2021	4.5	2.8
Jun 2021	4.6	3.1
Aug 2021	5.3	3.5
Oct 2021	6.1	3.7
Dec 2021	6.6	4.9
Feb 2022	7.8	6.5
Apr 2022	8.5	6.9
Jun 2022	10.2	6.0
Aug 2022	9.5	7.0
Oct 2022	7.6	6.9
Dec 2022	5.3	5.2
Feb 2023	5.2	5.4
Apr 2023	4.0	5.3
Jun 2023	1.7	5.4

Food prices rose 0.8 percent for the two months ending in June. Prices for food away from home (restaurant, cafeteria, and vending purchases) increased 3.0 percent, while prices for food at home (grocery store prices) decreased 0.6 percent for the same period. Within the food at home category, declines in the indexes for cereals and bakery products (-5.1 percent) and meats, poultry, fish, and eggs (-2.1 percent) outweighed increases in the index for fruits and vegetables (+4.8 percent).

Over the year, food prices advanced 7.7 percent. Prices for food at home increased 7.3 percent since a year ago, with all six major grocery store food group indexes contributing to the rise. The other food at home index (which includes sugar, sweets, fats, and oils) contributed most to the increase at 8.9 percent, followed by fruits and vegetables (+11.1 percent). The category for food away from home advanced 8.5 percent over the same period.

The energy index declined 1.3 percent for the two months ending in June. The decrease was almost entirely due to lower prices for gasoline (-3.5 percent), but price declines for natural gas service (-1.9 percent) also contributed. The two-month decline was partially offset by an increase in prices for electricity (+3.5 percent).

From June 2022 to June 2023, energy prices fell 33.1 percent. This decrease was due to a combination of a 31.3-percent decline in the gasoline index and a 40.1-percent decline in the electricity index, the third largest since April 1995. The index for natural gas service (-0.8 percent) was also down over the year.

The index for all items less food and energy increased 0.6 percent in the latest two-month period. Components contributing most to the increase were owners’ equivalent rent of residences (+1.0 percent), used cars and trucks (+4.6 percent), rent of primary residence (+1.2 percent), and education and communication (+1.3 percent). These increases were partially offset by lower prices for public transportation, apparel (-3.5 percent), and medical care commodities.

Over the year, the index for all items less food and energy advanced 5.4 percent. Components contributing to the increase included owners’ equivalent rent of residences (+9.7 percent), rent of primary residence (+9.7 percent), and motor vehicle maintenance and repair. Declines in the indexes for used cars and trucks (-4.5 percent), medical care (-1.2 percent), household furnishings and operations (-1.6 percent), and apparel (-3.7 percent) slightly offset these increases.

The August 2023 Consumer Price Index for the Houston-The Woodlands-Sugar Land area is scheduled to be released on Wednesday, September 13, 2023.

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 U.S. population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 29 percent of the total U.S. 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 6,000 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; for most of the CPI-U the reference base is 1982-84 equals 100. An increase of 7 percent from the reference base, for example, is shown as 107.000.  Alternatively, that relationship can also be expressed as the price of a base period market basket of goods and services rising from $100 to $107. For further details see the CPI home page on the internet at www.bls.gov/cpi and the CPI section of the BLS Handbook of Methods available on the internet at www.bls.gov/opub/hom/cpi/.

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 Houston-The Woodlands-Sugar Land, Texas, Core Based Statistical Area includes the counties of Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller.

Information in this release will be made available to individuals with sensory impairments upon request. Voice phone: (202) 691-5200; Telecommunications Relay Service: 7-1-1.