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16-1481-SAN
Friday, July 15, 2016

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Consumer Price Index, Portland – First Half 2016

Area prices were up 0.7 percent over the past six months, up 1.7 percent from a year ago

Prices in the Portland Area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased 0.7 percent in the first half of 2016, the U.S. Bureau of Labor Statistics reported today. (See table A.) Assistant Commissioner for Regional Operations Richard Holden noted that the six-month increase was influenced by higher prices for shelter. (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 1.7 percent.  (See chart 1 and table A.) Energy prices fell 10.8 percent, largely the result of a decrease in the price of gasoline. The index for all items less food and energy rose 3.2 percent over the year. (See table 1.)

Food

Food prices decreased 0.4 percent in the first half of 2016. (See table 1.) Prices for food at home decreased 0.8 percent, but prices for food away from home advanced 0.2 percent for the same period.

Over the year, food prices decreased 0.4 percent. Prices for food at home moved down 1.3 percent since a year ago, but prices for food away from home moved up 0.7 percent.

Energy

The energy index decreased 9.4 percent since the second half of 2015. The decline was mainly due to lower prices for gasoline (-15.6 percent). Prices for natural gas service decreased 5.0 percent, and electricity prices decreased 2.3 percent for the same period.

Energy prices fell 10.8 percent over the year, largely due to lower prices for gasoline (-17.4 percent). Prices paid for natural gas service decreased 7.4 percent, and prices for electricity declined 2.1 percent during the past year.

All items less food and energy

The index for all items less food and energy moved up 1.7 percent in the latest six-month period. Higher prices for shelter (3.1 percent) and education and communication (1.1 percent) were partially offset by lower prices for medical care (-0.9 percent) and recreation (-0.7 percent).

Over the year, the index for all items less food and energy rose 3.2 percent. Components contributing to the increase included shelter (6.7 percent) and to a lesser extent medical care (1.2 percent). Partly offsetting the increases were price declines in apparel and other goods and services, which declined 0.7 percent each.

Table A. Portland CPI-U semi-annual and annual percent changes (not seasonally adjusted)
Month 2011 2012 2013 2014 2015 2016
Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual

First Half

1.8 2.6 1.2 2.5 1.3 2.2 1.0 2.6 0.1 1.3 0.7 1.7

Second Half

1.3 3.1 0.9 2.1 1.5 2.8 1.2 2.3 1.0 1.1    

The second half of 2016 Consumer Price Index for the Portland-Salem, OR is scheduled to be released on mid-January 2017.


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/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
1st half 2016 from-
1st half
2015
2nd half
2015
1st half
2016
1st half
2015
2nd half
2015

Expenditure category

 
 

All items

242.976 245.405 247.143 1.7 0.7

All items (1967=100)

711.334 718.442 723.531 - -

Food and beverages

232.798 232.739 232.297 -0.2 -0.2

Food

235.511 235.428 234.485 -0.4 -0.4

Food at home

220.348 219.360 217.569 -1.3 -0.8

Food away from home

259.985 261.379 261.834 0.7 0.2

Alcoholic beverages

205.775 205.985 210.728 2.4 2.3

Housing

241.505 248.253 254.357 5.3 2.5

Shelter

282.733 292.802 301.740 6.7 3.1

Rent of primary residence

282.054 292.109 302.277 7.2 3.5

Owners' equiv. rent of residences (1)

294.635 305.104 314.407 6.7 3.0

Owners' equiv. rent of primary residence (1)

294.635 305.104 314.407 6.7 3.0

Fuels and utilities

261.482 262.123 257.600 -1.5 -1.7

Household energy

209.669 208.248 202.297 -3.5 -2.9

Energy services

257.691 256.444 248.908 -3.4 -2.9

Electricity

300.443 300.854 294.026 -2.1 -2.3

Utility (piped) gas service

169.206 165.000 156.704 -7.4 -5.0

Household furnishings and operations

105.230 103.998 105.882 0.6 1.8

Apparel

127.149 126.788 126.307 -0.7 -0.4

Transportation

220.578 217.482 213.566 -3.2 -1.8

Private transportation

223.573 220.921 214.429 -4.1 -2.9

Motor fuel

236.809 231.202 195.237 -17.6 -15.6

Gasoline (all types)

238.707 233.415 197.111 -17.4 -15.6

Gasoline, unleaded regular (2)

236.265 230.443 193.746 -18.0 -15.9

Gasoline, unleaded midgrade (2) (3)

203.349 199.685 170.250 -16.3 -14.7

Gasoline, unleaded premium (2)

222.462 219.688 188.269 -15.4 -14.3

Medical care

529.893 540.855 536.015 1.2 -0.9

Recreation (4)

110.166 108.598 107.822 -2.1 -0.7

Education and communication (4)

114.984 113.115 114.347 -0.6 1.1

Other goods and services

470.858 469.041 467.414 -0.7 -0.3
 

Commodity and service group

 
 

All Items

242.976 245.405 247.143 1.7 0.7

Commodities

178.573 177.714 174.372 -2.4 -1.9

Commodities less food & beverages

152.218 150.988 146.300 -3.9 -3.1

Nondurables less food & beverages

189.034 188.622 178.594 -5.5 -5.3

Durables

113.046 111.079 111.463 -1.4 0.3

Services

307.892 313.596 320.472 4.1 2.2
 

Special aggregate indexes

 
 

All items less medical care

230.190 232.264 234.220 1.8 0.8

All items less shelter

228.285 227.369 226.027 -1.0 -0.6

Commodities less food

154.070 152.895 148.582 -3.6 -2.8

Nondurables

209.650 209.410 204.134 -2.6 -2.5

Nondurables less food

189.217 188.852 180.026 -4.9 -4.7

Services less rent of shelter (1)

346.259 345.369 349.313 0.9 1.1

Services less medical care services

292.427 297.989 305.090 4.3 2.4

Energy

222.367 218.945 198.429 -10.8 -9.4

All items less energy

247.944 250.870 254.398 2.6 1.4

All items less food and energy

252.108 255.632 260.086 3.2 1.7

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: Friday, July 15, 2016