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15-303-SAN
Thursday, February 26, 2015

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Consumer Price Index, Portland – Second Half 2014

Area prices were up 1.2 percent over the past six months, up 2.3 percent from a year ago

Prices in the Portland Area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), rose 1.2 percent in the second half of 2014, the U.S. Bureau of Labor Statistics reported today. (See table A.) 

Regional Commissioner Richard J. Holden noted that the January increase was influenced by higher prices for shelter and food. (Data in this report are not seasonally adjusted. Accordingly, six-month-to-six-month changes may reflect seasonal influences.)

Over the last 12 months, the CPI-U increased 2.3 percent.  (See chart 1 and table A.) Energy prices increased 0.9 percent, largely the result of an increase in the price of electricity. The index for all items less food and energy rose 2.2 percent over the year. (See table 1.)

 Chart 1. Over-the-year percent change in CPI-U, Portland, First half of 2011 – Second half 2014

Food

Food prices rose 2.8 percent in the second half of 2014. (See table 1.) Prices for food at home rose 2.8 percent, and prices for food away from home also rose 2.8 percent for the same period.

Over the year, food prices increased 3.9 percent. Prices for food at home advanced 4.4 percent since a year ago, and prices for food away from home increased 3.3 percent.

Energy

The energy index declined 2.0 percent since the first half of 2014. The decrease was mainly due to lower prices for gasoline (-3.3 percent). Prices for electricity edged down 0.1 percent, but prices for natural gas service rose 0.8 percent for the same period.

Energy prices increased 0.9 percent over the year, largely due to higher prices for electricity (7.2 percent). Prices paid for natural gas service advanced 1.4 percent, but prices for gasoline declined 1.9 percent during the past year.

All items less food and energy

The index for all items less food and energy increased 1.3 percent in the latest six-month period. Higher prices for shelter (2.7 percent) and medical care (1.9 percent) were partially offset by lower prices for recreation (-0.5 percent).

Over the year, the index for all items less food and energy rose 2.2 percent. Components contributing to the increase included shelter (4.5 percent) and medical care (2.7 percent). Partly offsetting the increases were price declines in apparel (-2.2 percent) and household furnishings and operations (-0.4 percent).

Table A. Portland CPI-U semi-annual and annual percent changes (not seasonally adjusted)
Month 2009 2010 2011 2012 2013 2014
Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual

First Half

-1.0 -0.2 0.1 1.6 1.8 2.6 1.2 2.5 1.3 2.2 1.0 2.6

Second Half

1.4 0.5 0.8 0.9 1.3 3.1 0.9 2.1 1.5 2.8 1.2 2.3

The first half of 2015 Consumer Price Index for the Portland-Salem, OR is scheduled to be released on August 19, 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 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 cities; they only measure the average change in prices for each area since the base period.

The Portland-Salem, OR, WA metropolitan area covered in this release consists of Clackamas, Columbia, Marion, Multnomah, Polk, Washington, and Yamhill Counties in the State of Oregon and Clark County in the State of Washington.

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

Portland-Salem, OR-WA (1982-84=100 unless otherwise noted)
Item and Group

 
Semiannual average indexes
 
Percent change to
2nd half 2014 from-
2nd half
2013
1st half
2014
2nd half
2014
2nd half
2013
1st half
2014

Expenditure category

 
 

All items

237.322 239.751 242.679 2.3 1.2

All items (1967=100)

694.780 701.889 710.462 - -

Food and beverages

223.207 225.641 231.522 3.7 2.6

Food

224.950 227.401 233.825 3.9 2.8

Food at home

210.133 213.328 219.350 4.4 2.8

Food away from home

247.892 249.125 256.078 3.3 2.8

Alcoholic beverages

207.014 209.176 209.062 1.0 -0.1

Housing

227.663 231.548 236.783 4.0 2.3

Shelter

264.462 268.974 276.248 4.5 2.7

Rent of primary residence

263.073 267.855 275.558 4.7 2.9

Owners' equiv. rent of residences (1)

276.089 280.762 287.642 4.2 2.5

Owners' equiv. rent of primary residence (1)

276.089 280.762 287.642 4.2 2.5

Fuels and utilities

248.183 257.502 259.356 4.5 0.7

Household energy

197.338 208.833 208.499 5.7 -0.2

Energy services

241.826 255.323 255.710 5.7 0.2

Electricity

278.282 298.351 298.193 7.2 -0.1

Utility (piped) gas service

165.440 166.438 167.798 1.4 0.8

Household furnishings and operations

106.096 104.905 105.624 -0.4 0.7

Apparel

128.638 124.700 125.834 -2.2 0.9

Transportation

241.832 242.858 237.213 -1.9 -2.3

Private transportation

243.228 245.511 241.753 -0.6 -1.5

Motor fuel

311.396 315.835 305.276 -2.0 -3.3

Gasoline (all types)

313.906 318.419 307.919 -1.9 -3.3

Gasoline, unleaded regular (2)

312.033 316.695 306.226 -1.9 -3.3

Gasoline, unleaded midgrade (2) (3)

265.410 268.829 259.803 -2.1 -3.4

Gasoline, unleaded premium (2)

287.771 291.450 282.174 -1.9 -3.2

Medical care

500.430 504.334 513.925 2.7 1.9

Recreation (4)

108.594 110.231 109.679 1.0 -0.5

Education and communication (4)

116.012 115.807 116.664 0.6 0.7

Other goods and services

464.108 468.845 472.044 1.7 0.7
 

Commodity and service group

 
 

All Items

237.322 239.751 242.679 2.3 1.2

Commodities

181.140 181.550 182.562 0.8 0.6

Commodities less food & beverages

160.414 159.936 158.647 -1.1 -0.8

Nondurables less food & beverages

201.011 200.948 199.795 -0.6 -0.6

Durables

117.358 116.571 115.187 -1.8 -1.2

Services

294.069 298.488 303.328 3.1 1.6
 

Special aggregate indexes

 
 

All items less medical care

225.525 227.874 230.520 2.2 1.2

All items less shelter

228.181 229.690 230.794 1.1 0.5

Commodities less food

161.989 161.621 160.378 -1.0 -0.8

Nondurables

211.209 212.258 214.540 1.6 1.1

Nondurables less food

200.332 200.455 199.385 -0.5 -0.5

Services less rent of shelter (1)

339.545 343.621 344.944 1.6 0.4

Services less medical care services

278.631 283.101 287.979 3.4 1.7

Energy

252.293 259.747 254.520 0.9 -2.0

All items less energy

239.324 241.399 245.176 2.4 1.6

All items less food and energy

243.795 245.815 249.113 2.2 1.3

Footnotes
(1) Index is on a December 1982=100 base.
(2) Special index based on a substantially smaller sample.
(3) Indexes on a December 1993=100 base.
(4) Indexes on a December 1997=100 base.
 

- Data not available.
 

 

Last Modified Date: Thursday, February 26, 2015