| Web site: www.bls.gov/ro3/ | PLS - 4542 For Release: Wednesday, June 17, 2009 |
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| Information: | Gerald Perrins (215) 597-3282 |
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| Media Contact: | Sheila Watkins (215) 861-5600 |
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WASHINGTON-BALTIMORE AREA CONSUMER PRICE INDEX: MAY 2009 (PDF)
First Over-the-Year Decrease in the All Items Index
Retail prices in the Washington-Baltimore area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), rose 0.5 percent from March to May, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Sheila Watkins, the Bureau’s regional commissioner, noted that the recent advance was dominated by higher prices for transportation and housing, as advances in three other major categories (other goods and services, education and communication, and medical care) were more than offset by declines in food and beverages, apparel, and recreation. (See chart A.) The May level of 139.311 (November 1996 = 100) was 0.2 percent lower than in May 2008—the first 12-month decline in local prices since the inception of the index in November 1996. Over the same period, the core inflation rate, as measured by the all items less food and energy index, rose 2.1 percent. (See table 1.)
Chart A. 2-month and 12-month percent changes ended May 2009 for the major categories of the CPI-U for the Washington-Baltimore area, not seasonally adjusted
The transportation index rose 3.0 percent from March to May due to a 13.0-percent jump in gasoline prices. Due to strong declines in the second half of last year, gasoline prices were 41.1 percent lower than last May. The gasoline index is historically subject to rapid fluctuations; within the last year, it posted a 2-month decrease of 44.9 percent in December 2008 and a 2-month increase of 17.8 percent in June 2008, as well as a 12-month decrease of 42.1 percent in January 2009 and a 12-month advance of 38.1 percent in July 2008. Overall, the transportation index was 16.0 percent lower than last May—the largest over-the-year decline since publication began in November 1996.
The housing index increased 0.4 percent since March. Shelter prices advanced 0.6 percent over the last two months as prices rose for both published components, owners’ equivalent rent of primary residence (0.6 percent) and rent of primary residence (0.5 percent). Over the year, prices for these two components were 3.3 and 4.8 percent higher, respectively. Shelter prices rose 2.7 percent since May 2008. The household furnishings and operations index inched up 0.1 percent over the last two months to a level 3.7 percent higher than a year ago. Moderating the overall rise in the housing index were lower prices for fuels and utilities, which edged down 0.3 percent since March due to lower prices for fuel oil and propane, kerosene, and firewood. Prices for utility (piped) gas service rose 0.7 percent, while electricity prices were unchanged since March. Over the year, utility gas service prices fell 29.7 percent, while electricity prices rose 11.0 percent. The fuels and utilities index was 0.2 percent lower since last May. The overall housing index rose 2.5 percent from its year-ago level.
Following a 1.8-percent advance from January to March, the other goods and services index rose 1.3 percent from March to May as an increase on the federal excise tax on cigarettes went into effect during this period. 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 5.7 percent since last May.
Education and communication prices edged up 0.2 percent since March due in part to higher prices for postage. Over the year, the education and communication index advanced 3.4 percent.
Prices for medical care inched up 0.1 percent over the last two months and were 1.0 percent higher since May 2008.
The remaining indexes had lower prices from March to May. Prices for food and beverages fell 0.8 percent since March due to price declines for both food at home (-1.5 percent) and alcoholic beverages (-2.0 percent). Over the year, food at home prices rose 2.5 percent, while prices for alcoholic beverages fell 0.9 percent. Prices for food away from home inched up 0.1 percent since March to a level 4.1 percent higher than a year ago. The overall food and beverages index advanced 2.9 percent over the year.
Following a 6.3-percent seasonal increase from January to March, apparel prices fell 0.7 percent from March to May, led by lower prices for jewelry and women’s outerwear. The recent decline, which was moderated by higher prices for women’s dresses, was smaller than the typical March-to-May decline; over the previous five years, apparel prices decreased an average of 3.0 percent during this time period. Since May 2008, apparel prices rose 5.9 percent.
The recreation index inched down 0.1 percent over the last two months. Over the year, the recreation index declined 2.5 percent—the largest decrease since the inception of this index in December 1997.
The energy index, which reflects prices for gasoline and household fuels, advanced 4.7 percent since March due to a 13.0-percent increase in prices for gasoline. Utility gas prices were also higher (0.7 percent) from March to May, but were offset by lower prices for fuel oil and propane, kerosene, and firewood. Over the year, energy prices dropped 22.8 percent—their largest decrease since publication began in November 1996.
About three-fifths of the two-month increase in the overall local index came from rising prices for services, up 0.4 percent since March and 2.0 percent over the year. The commodities index was also higher over the last two months, up 0.6 percent, but was 4.4 percent lower since May 2008.
The CPI-U for the Washington-Baltimore area stood at 139.311 on the November 1996=100 reference base, which means that a market basket of goods and services that averaged $100.00 in November 1996 would have cost $139.31 in May.
The Washington-Baltimore, D.C.-Md.-Va.-W.Va., Consolidated Metropolitan Statistical Area (CMSA) includes the District of Columbia; Baltimore City and the counties of Anne Arundel, Baltimore, Calvert, Carroll, Charles, Frederick, Harford, Howard, Montgomery, Prince George’s, Queen Anne’s, and Washington in Maryland; the cities of Alexandria, Fairfax, Falls Church, Fredericksburg, Manassas, and Manassas Park and the counties of Arlington, Clarke, Fairfax, Fauquier, King George, Loudoun, Prince William, Rappahannock, Spotsylvania, Stafford, and Warren in Virginia; and the counties of Berkeley and Jefferson in West Virginia.
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.)
| Item and group | CPI-U |
|---|---|
| Expenditure category | |
All items |
100.000 |
Food and beverages |
14.284 |
Food |
13.166 |
Food at home |
6.807 |
Food away from home |
6.359 |
Alcoholic beverages |
1.118 |
Housing |
48.599 |
Shelter |
39.000 |
Rent of primary residence |
6.474 |
Owners' equivalent rent of primary residence |
29.560 |
Fuels and utilities |
5.514 |
Household energy |
4.836 |
Gas (piped) and electricity |
4.649 |
Electricity |
3.668 |
Utility (piped) gas service |
0.981 |
Household furnishings and operations |
4.085 |
Apparel |
3.878 |
Transportation |
12.569 |
Private transportation |
11.317 |
Motor fuel |
3.206 |
Gasoline |
3.184 |
Medical care |
5.015 |
Recreation |
5.194 |
Education and communication |
7.465 |
Other goods and services |
2.996 |
| Commodity and service group | |
Commodities |
34.255 |
Commodities less food and beverages |
19.971 |
Non durables less food and beverages |
12.157 |
Durables |
7.815 |
Services |
65.745 |
| Special aggregate indexes | |
All items less medical care |
94.985 |
All items less shelter |
61.000 |
Commodities less food |
21.090 |
Nondurables |
26.440 |
Nondurables less food |
13.275 |
Services less rent of shelter |
27.133 |
Services less medical care services |
61.938 |
Energy |
8.042 |
All items less energy |
91.958 |
All items less food and energy |
78.793 |
| Expenditure category | Indexes | Percent change from- | ||||
|---|---|---|---|---|---|---|
| Mar. 2009 | Apr. 2009 | May 2009 | May 2008 | Mar. 2009 | Apr. 2009 | |
All items (1) |
138.620 | - | 139.311 | -0.2 | 0.5 | - |
Food and beverages (1) |
140.264 | - | 139.133 | 2.9 | -0.8 | - |
Food (1) |
141.722 | - | 140.720 | 3.3 | -0.7 | - |
Food at home |
138.098 | 135.515 | 136.050 | 2.5 | -1.5 | 0.4 |
Food away from home (2) |
143.757 | - | 143.937 | 4.1 | 0.1 | - |
Alcoholic beverages (2) |
120.020 | - | 117.660 | -0.9 | -2.0 | - |
Housing (1) |
151.674 | - | 152.349 | 2.5 | 0.4 | - |
Shelter |
156.085 | 156.131 | 156.979 | 2.7 | 0.6 | 0.5 |
| 167.773 | 168.139 | 168.638 | 4.8 | 0.5 | 0.3 | |
Owners' equivalent rent of primary residence (3) |
155.398 | 155.658 | 156.272 | 3.3 | 0.6 | 0.4 |
Fuels and utilities |
180.981 | - | 180.493 | -0.2 | -0.3 | - |
Household energy |
184.990 | 187.876 | 184.157 | -1.0 | -0.5 | -2.0 |
Gas (piped) and electricity (3) |
179.081 | 182.092 | 179.359 | 0.7 | 0.2 | -1.5 |
Electricity (3) |
186.944 | 185.888 | 187.022 | 11.0 | 0.0 | 0.6 |
Utility (piped) gas service (3) |
133.062 | 149.318 | 133.977 | -29.7 | 0.7 | -10.3 |
Household furnishings and operations |
103.627 | - | 103.760 | 3.7 | 0.1 | - |
Apparel (1) |
96.914 | - | 96.228 | 5.9 | -0.7 | - |
Transportation (1) |
117.457 | - | 120.989 | -16.0 | 3.0 | - |
Private transportation |
117.081 | - | 121.086 | -16.0 | 3.4 | - |
Motor fuel |
161.628 | 169.481 | 182.489 | -41.1 | 12.9 | 7.7 |
Gasoline (all types) |
161.539 | 169.413 | 182.478 | -41.1 | 13.0 | 7.7 |
Gasoline, unleaded regular (4) |
162.315 | 170.172 | 184.339 | -41.9 | 13.6 | 8.3 |
Gasoline, unleaded midgrade (4) |
163.267 | 171.589 | 182.607 | -39.7 | 11.8 | 6.4 |
Gasoline,unleaded premium (4) |
163.902 | 171.296 | 183.179 | -39.0 | 11.8 | 6.9 |
Medical care (1) |
142.003 | - | 142.187 | 1.0 | 0.1 | - |
Recreation |
115.470 | - | 115.334 | -2.5 | -0.1 | - |
Education and communication |
130.970 | - | 131.296 | 3.4 | 0.2 | - |
Other goods and services (1) |
161.662 | - | 163.730 | 5.7 | 1.3 | - |
| Commodity and service group | ||||||
Commodities |
119.274 | - | 119.989 | -4.4 | 0.6 | - |
Commodities less food and beverages |
107.388 | - | 109.136 | -9.0 | 1.6 | - |
Nondurables less food and beverages |
126.695 | - | 130.454 | -13.4 | 3.0 | - |
Durables |
86.025 | - | 85.718 | -1.2 | -0.4 | - |
Services |
151.372 | - | 152.048 | 2.0 | 0.4 | - |
| Special aggregate indexes | ||||||
All items less medical care (1) |
138.387 | - | 139.104 | -0.3 | 0.5 | - |
All items less shelter |
129.674 | - | 130.257 | -2.1 | 0.4 | - |
Commodities less food |
108.064 | - | 109.612 | -8.6 | 1.4 | - |
Nondurables |
133.178 | - | 134.362 | -5.3 | 0.9 | - |
Nondurables less food |
126.277 | - | 129.477 | -12.5 | 2.5 | - |
Services less rent of shelter |
146.337 | - | 146.708 | 1.0 | 0.3 | - |
Services less medical care services |
152.160 | - | 152.873 | 2.1 | 0.5 | - |
Energy (1) |
172.947 | 177.842 | 181.064 | -22.8 | 4.7 | 1.8 |
All items less energy |
135.533 | - | 135.754 | 2.3 | 0.2 | - |
All items less food and energy (1) |
135.413 | - | 135.831 | 2.1 | 0.3 | - |
Footnotes |
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Last Modified Date: September 23, 2009