Consumer Price Index for the South—March 2008 (PDF)

The Consumer Price Index for All Urban Consumers (CPI-U) for the South¹ rose 0.8 percent in March to 206.676 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  Regional Commissioner Sheila Watkins noted that the increase was predominately due to higher prices for transportation and housing.  The energy index increased 5.0 percent while the cost of food was unchanged in March.  Excluding food and energy, the CPI-U for the South was up 0.3 percent over the month.

Table A.  Percent changes in the Consumer Price Index for All Urban Consumers for the South by expenditure category (not seasonally adjusted)

1/ Index on a December 1997=100 base.

Over the last 12 months, prices in the South rose 4.4 percent, due largely to higher costs for transportation, housing, and food and beverages.  Energy costs in the region jumped 19.2 percent, while food prices increased 4.9 percent since last March.  Excluding food and energy, the index for all other items advanced 2.4 percent over the year.

Among the major categories, the transportation index advanced 2.4 percent in March, as a 7.1-percent increase in motor fuel costs was partially offset by a 0.5-percent decline in prices for new and used motor vehicles.  Over the year, transportation costs advanced 9.6 percent, primarily as a result of a 30.6-percent jump in motor fuel prices.

The index for housing increased 0.6 percent in March, reflecting higher prices for all three of its main components.  The shelter index (which includes rent of primary residence, owners’ equivalent rent of primary residence, lodging away from home, and tenants’ and household insurance) rose 0.4 percent over the month.  The fuels and utilities index advanced 1.6 percent in March, as costs for household energy increased 2.0 percent.  Household furnishings and operations prices rose 0.4 percent over the month.  Since March 2007, the housing index rose 3.3 percent in the South.  Higher prices for shelter (up 3.2 percent) and fuels and utilities (up 6.4 percent) were responsible in large part for the 12-month increase in the housing index.  Costs for household furnishings and operations also advanced, up 0.6 percent over the year.

Reflecting normal seasonal patterns, apparel costs increased 1.5 percent in March.  Over the year, apparel costs decreased 3.0 percent.  This was the largest 12-month decline since February 2004.

The index for medical care increased 0.3 percent over the month, as costs rose 0.7 percent for medical care commodities and 0.1 percent for medical care services.  Over the year, the medical care index advanced 5.3 percent, as prices for medical care services and medical care commodities each rose 5.3 percent.  The recent increase in the medical care index was the largest since August 1995.

 The recreation index edged up 0.3 percent in March.  Over the year, prices for recreation were up 1.4 percent.

The other goods and services index (which includes tobacco and smoking products, personal care products and services, and miscellaneous personal goods) increased 0.3 percent over the month to a level 3.2 percent higher than last year.

The food and beverages index was unchanged in March.  Alcoholic beverage prices were little changed during the month and a 0.4-percent increase in costs for food away from home was offset by a 0.3-percent decline in costs for food at home.  Over the month, costs for alcoholic beverages inched up 0.1 percent.  Over the past 12 months, the food and beverages index advanced 4.8 percent led by a 5.3-percent rise in food at home prices.  Prices for food away from home and alcoholic beverages increased 4.4 and 3.0 percent, respectively.

The education and communication index was essentially unchanged, inching down 0.1 percent in March.  Over the year, this index rose 2.8 percent.

Population size groups

Over the month, consumer prices in the South increased 0.7 percent in the largest metropolitan areas, those with 1.5 million or more residents (Size Class A).  Prices rose 0.8 percent in both the mid-size areas, those with populations between 50,000 and 1.5 million (Size Class B/C), and in the smallest areas, those with populations of less than 50,000 (Size Class D).  Over the past 12 months, consumer prices in the South advanced 4.3 percent in the largest areas (Size Class A), 4.5 percent in the mid-sized areas (Size Class B/C), and 4.4 percent in the smallest areas (Size Class D).

Technical Notes

The Bureau of Labor Statistics (BLS) has updated the consumption expenditure weights in the Consumer Price Index for all Urban Consumers (CPI-U) and Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to the 2003-04 period.  The updated expenditure weights for these indexes replace the 2001-2002 weights that were introduced effective with the January 2004 CPI release.  As originally announced by BLS in December 1998, CPI expenditure weights will continue to be updated at two-year intervals.

The CPI program completed its conversion to Computer Assisted Data Collection (CADC).  Due to the efficiencies gained from conversion to CADC, BLS has extended data collection to cover the entire month, beginning with data for January 2004.  CPI data collection is scheduled in terms of business days – weekdays excluding holidays.  Formerly, data collection covered three pricing periods, each comprising six business days in most months and five days in November and December.  Consequently, the last day of scheduled data collection was usually the 18th business day of the month.  This allowed time during the end of the month for the mailing of paper schedules back to the Washington Office and the data entry of the information in these schedules.  Starting in January 2004, the three pricing periods now have variable lengths, between six and eight business days long.  The third pricing period normally will end on the last business day of the month.

Local area CPI indexes are by-products of the national CPI program.  Because each local index is a small subset of the national index, it has a smaller sample size and is, therefore, subject to substantially more sampling and measurement error than the national index, although their long-term trends are quite similar.  The Bureau of Labor Statistics strongly urges users to consider adopting the national average CPI for use in escalator clauses.

We encourage users interested in learning more about changes to the CPI to contact the Bureau of Labor Statistics. Information on the Consumer Price Index and other surveys are available on our Web site. Current and historical BLS data are also posted on our Web site. If you have additional questions, you can contact the Mid-Atlantic Information Office directly by dialing (215) 597-3282. Information from the Consumer Price Index program is available to sensory impaired individuals upon request. Voice phone: 202-691-5200, Federal Relay Services: 1-800-877-8339.