Philadelphia Area Consumer Price Index: February 2009 (PDF)

Retail Prices Register Second Consecutive Over-the-Year Decrease

Retail prices in the Philadelphia area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased 1.0 percent from December to February, after falling 3.1 percent in the previous two-month period, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Sheila Watkins, the Bureau's regional commissioner, noted that while all of the eight major categories rose since December, apparel was primarily responsible for the recent advance. (See chart A.) The February level of 220.262 (1982-84 = 100) was 0.3 percent lower than in February 2008—the second consecutive over-the-year decline in the local CPI after more than 52 years without a 12-month decrease. Over the last 12 months, the core inflation rate, as measured by the all items less food and energy index, rose 1.2 percent. (See table 1.)

Chart A. 2-month and 12-month percent changes ended February 2009 for the major categories of the CPI-U for the Philadelphia area, not seasonally adjusted

chart data

Apparel prices jumped 14.1 percent over the last two months—the largest December-February advance since publication began in 1953. Over the year, the apparel index rose 3.8 percent.

Following three consecutive bimonthly periods of decreases, totaling 20.9 percent, the transportation index rose 1.1 percent from December to February. Higher gasoline prices were responsible for the recent increase, up 6.6 percent since December after three consecutive bimonthly declines totaling 54.9 percent. Over the year, gasoline prices dropped 35.1 percent. Lower prices for used cars and trucks helped to moderate the two-month advance in the transportation index. Since February 2008, transportation prices declined 11.4 percent.

The housing index rose 0.3 percent from December to February after falling 1.1 percent from October to December. The household furnishing and operations index rose 1.6 percent since December due partially to higher major appliance prices; the index was 2.7 percent higher over the year. Shelter prices, which includes rent of primary residence, lodging away from home, owners’ equivalent rent of primary residence, and tenants’ and household insurance, inched up 0.1 percent from December to February and rose 0.4 percent over the year. The fuels and utilities index also rose since December, up 0.6 percent. Higher prices for electricity (1.9 percent) were partially offset by lower prices for fuel oil, while the utility (piped) gas services index was unchanged from December to February. Over the year, prices for electricity and utility gas advanced 5.4 and 8.3 percent, respectively. The fuels and utilities index increased 2.2-percent since February 2008. The overall housing index was 0.9 percent above its year-ago level.

The education and communication index increased for the seventh consecutive bimonthly period, up 0.9 percent over the last two months and 4.4 percent over the year.

The food and beverages index edged up 0.2 percent since December due almost entirely to higher prices for food away from home, in particular full service meals and snacks. The food away from home index rose 0.9 percent over the last two months and 3.5 percent over the year. Prices for alcoholic beverages inched up 0.1 percent since December and were 4.7 percent higher than February 2008 levels. Moderating the overall increase in the food and beverages index, food at home prices declined 0.4 percent from December to February, but increased 2.9 percent over the last 12 months. Since February 2008, the food and beverages index advanced 3.3 percent.

Recreation prices rose 0.5 percent over the last two months, due mainly to higher prices for sports equipment. Over the year, recreation prices were essentially unchanged, rising just 0.1 percent.

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, increased 0.7 percent since December and 3.1 percent since February 2008.

Prices for medical care edged up 0.2 percent over the last two months to a level 2.0 percent higher than last year.

The energy index, which reflects prices for gasoline and household fuels, advanced 2.3 percent from December to February due in large part to higher gasoline prices, which rose 6.6 percent. Higher electricity prices (1.9 percent) also contributed to the recent increase in the energy index, while lower fuel oil prices moderated the overall advance. Utility (piped) gas service was unchanged over the last two months. Since last February, energy prices fell 15.5 percent.

Over fourth-fifths of the recent two-month increase in Philadelphia CPI was due to higher commodities prices, which increased 2.2 percent. The service index edged up 0.3 percent from December to February. Commodities prices were 3.5 percent lower since last February, while prices for services rose 1.6 percent over the year.

The CPI-U for the Philadelphia area stood at 220.262 on the 1982-84=100 reference base, which means that a market basket of goods and services which averaged $100.00 in 1982-84 would have cost $220.26 in February 2009.

The Philadelphia-Wilmington-Atlantic City, Pa.-N.J.-Del.-Md., Consolidated Metropolitan Statistical Area (CMSA), includes Bucks, Chester, Delaware, Montgomery, and Philadelphia Counties in Pennsylvania; Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, and Salem Counties in New Jersey; New Castle County in Delaware; and Cecil County in Maryland.

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: September 23, 2009

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