Consumer Prices in the Northeast: March 2008 (PDF)

Retail prices in the Northeast region, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), rose 0.8 percent in March, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Denis McSweeney, the Bureau's regional commissioner, noted that while increases in the housing and transportation indexes led the way, seven of the eight major categories that comprise the CPI-U had higher prices in March; the medical care index was unchanged since February. (See chart A.) The March level of 226.926 (1982-84=100) was 3.9 percent higher than a year ago. Over the same period, the core inflation rate, as measured by the all items less food and energy index, rose 2.4 percent.  (See table 1.)

Chart A.  1-month and 12-month percent changes ended March 2008 for the major categories of the CPI-U for the Northeast region, not seasonally adjusted

chart data

The housing index rose 0.8 percent in March, due largely to a 0.7-percent increase in shelter prices. The shelter index, which includes rent of primary residence, lodging away from home, owners' equivalent rent of primary residence, and tenants' and household insurance, rose 3.0 percent over the year. Fuels and utilities prices increased 1.2 percent over the month, due in part to higher utility (piped) gas service prices, which were up 1.4 percent in March and 2.8 percent over the year. Electricity prices fell 1.6 percent over the month but were 1.3 percent higher than last year. Over the last 12 months, the fuels and utilities index advanced 9.4 percent. Prices for household furnishings and operations, the third component of the housing index, rose 0.5 percent over the month. Due to declines in 9 of the last 12 months, the household furnishings and operations index was down 1.9 percent over the year. The overall housing index advanced 3.3 percent from its year-ago level.

Following a 0.4-percent decline in February, the transportation index rose 1.6 percent in March, due largely to higher gasoline prices. After decreasing 1.5 percent in February, gasoline prices advanced 4.3 percent in March. Over the year, gasoline prices were 24.6 percent higher. Moderating the recent advance in the transportation index were lower prices for new vehicles, down 0.3 percent over the month and 1.0 percent over the year. The overall transportation index advanced 7.5 percent since March 2007.

Apparel prices rose 2.2 percent in March. The one-month seasonal increase in the apparel index was lower than the 4.0-percent average increase in March for the last five years. Despite the recent advance, apparel prices were 1.5 percent lower over the year.

Food and beverages prices rose for the 16th consecutive month, up 6.5 percent since November 2006 and 0.3 percent since last month. In March, food away from home prices edged up 0.3 percent over the month and food at home prices, 0.2 percent. Over the year, the food away from home and food at home indexes were 4.5 and 4.6 percent higher, respectively. Also contributing to the overall rise in the food and beverages index were higher prices for alcoholic beverages, up 0.4 percent over the month. Since March 2007, alcoholic beverages prices rose 4.1 percent. The overall food and beverages index advanced 4.5 percent from its year-ago level.

The other goods and services index rose 0.8 percent since February-the largest one-month increase since January 2004. Over the year, the other goods and services index (which includes tobacco and smoking products, personal care products and services, and miscellaneous personal services such as legal, funeral, and laundry and dry cleaning services) was 2.8 percent higher.

Recreation prices edged up 0.2 percent since February and were 1.5 percent higher than in last March.

The education and communication index was nearly unchanged in March, inching up 0.1 percent, and was 4.4 percent higher over the year.

After eight consecutive months of increases totaling 3.5 percent, there was no change in the medical care index in March. Higher prices for medical care commodities (up 0.3 percent) were offset by lower prices for medical care services (down 0.1 percent). These two components of the medical care index had over-the-year increases of 2.2 and 4.1 percent, respectively. The overall medical care index increased 3.8 percent over the last 12 months.

The energy index, which reflects prices for gasoline and household fuels, rose 2.9 percent in March, due in large part to a 4.3-percent increase in gasoline prices. Also contributing to the increase in the overall energy index were higher utility (piped) gas service prices. Over the year, the energy index was 16.4 percent higher.

The Northeast region is comprised of Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

The relative importance of a component of the CPI is its expenditure or value weight expressed as a percentage of all items within an area. Relative importance ratios show approximately how the index population distributes expenditures when the value weights are collected and represent an estimate of how consumers would distribute their expenditures as prices change over time. Relative importance ratios cannot be used as estimates of current spending patterns or as indicators of changing consumer expenditures in the intervals between weight revisions because consumption patterns are influenced by factors-including income, variations in climate, family size, and availability of new and different kinds of goods and services-other than price change. (See table A.)

Last Modified Date: April 17, 2008