Northeast Region Consumer Price Index: December 2009 (PDF)

Retail prices in the Northeast region, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), inched down 0.1 percent in December, the U.S. Bureau of Labor Statistics reported today. Denis M. McSweeney, the Bureau’s regional commissioner, noted that lower prices for apparel, recreation, and medical care were nearly offset by higher prices for transportation, food and beverages, and other goods and services. There was no change in the two remaining categories. (See chart 1.) The December level of 231.462 (1982-84 = 100) was 2.8 percent higher than in December 2008. 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 1.  1-month and 12-month percent changes ended December 2009 for the major categories of the CPI-U for the Northeast region, not seasonally adjusted

chart

Following normal seasonal patterns, the apparel index fell 2.6 percent in December after decreasing 2.0 percent in November. The recent one-month seasonal decline was smaller than the 4.1-percent average decrease in December for the last five years. Despite the recent decline, apparel prices were 4.7 percent higher over the year—the largest 12-month increase since May 2004.

Recreation prices decreased for the fourth straight month, down 1.7 percent since August and 0.9 percent since November.  The recent one-month decrease was the largest since June 2005. Over the year, recreation prices were 1.1 percent higher.

Following no change in November, medical care prices inched down 0.1 percent in December. Medical care commodities prices were responsible for the recent decrease, down 0.3 percent over the month but up 3.1 percent since December 2008. Medical care services prices were unchanged over the month but were 1.9 percent higher over the year. The medical care index rose 2.2 percent from its year-ago level.

The housing index was unchanged over the month, as lower prices for household furnishings and operations were offset by higher prices for fuels and utilities. Shelter prices were unchanged over the month. The shelter index, which includes rent of primary residence, lodging away from home, owners’ equivalent rent of primary residence, and tenants’ and household insurance, was 1.7 percent higher over the year. Household furnishings and operations prices fell for the third straight month, down 1.4 percent since September and 0.3 percent since November. Over the last 12 months, the household furnishings and operations index decreased 1.5 percent. The fuels and utilities index was up 0.2 percent over the month, reflecting a 0.7-percent increase in utility (piped) gas service prices. Due to 10 decreases in the last 12 months, utility gas service prices were 19.6 percent lower since last December. Electricity prices edged down 0.2 percent over the month and were 0.4 percent lower over the year. The fuels and utilities index was 3.8 percent lower than last year. The overall housing index rose 0.7 percent over the last 12 months.

The education and communication index was unchanged in December.  Over the year, the education and communication index advanced 1.9 percent.

The remaining categories had higher prices from November to December. The transportation index edged up 0.2 percent over the month, as higher prices for used cars and trucks and new vehicles were nearly offset by lower gasoline prices. Prices for used cars and trucks rose for the eighth straight month, up 12.5 percent since April and 2.3 percent since November.  Over the year, prices for used cars and trucks were 8.5 percent higher. Prices for new vehicles increased 0.6 percent in December and 4.8 percent over the last 12 months—the largest over-the-year increase since September 1994. Moderating the overall rise in the transportation index were lower gasoline prices. Following a 5.3-percent rise in November, gasoline prices fell 1.2 percent in December.  Due to strong price increases in the first half of 2009, gasoline prices were 47.1 percent higher over the year—the largest 12-month increase since September 2005. The overall transportation index was up 12.3 percent since December 2008.

The food and beverages index inched up 0.1 percent in December. Food at home prices were up 0.2 percent over the month but were 1.7 percent lower over the year. The other two components of the food and beverages index, food away from home and alcoholic beverages, were both unchanged over the month.  Over the year, these two components increased 1.8 and 2.2 percent, respectively. For the third consecutive month, there was no over-the-year change in the food and beverages index.

The other goods and services index rose 0.3 percent in December. Due to 10 increases in the last 12 months, the other goods and services index (which includes tobacco and smoking products, personal care products, personal care services, and miscellaneous personal services such as legal, funeral, and laundry and dry cleaning services) advanced 7.8 percent over the year.

Dominated by lower prices for gasoline (-1.2 percent) and electricity (-0.2 percent), energy prices decreased 0.4 percent over the month. Over the year, energy prices were 12.3 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.)