Midwest Information Office

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CONSUMER PRICE INDEX CHICAGO-GARY-KENOSHA, ILL.-IND.-WIS. CMSA SEPTEMBER 2009

The Chicago-Gary-Kenosha Consumer Price Index (CPI-U) was unchanged in September, the U.S. Department of Labor’s Bureau of Labor Statistics reported today. Over the past 12 months, the Chicago area CPI-U declined 1.9 percent. In the previous 12-month period ended in September 2008, consumer prices rose 4.4 percent. The Chicago area CPI-U for September 2009 was 211.345 (1982-84=100). 

Jay A. Mousa, regional commissioner for the bureau in Chicago, said that increases in the components for apparel, other goods and services, medical care, and education and communication were offset by declines in the components for housing, transportation, and recreation. The food and beverages component was unchanged.

Apparel prices rose 1.7 percent during September. Higher price tags were noted on men’s shirts and sweaters, boy’s apparel, women’s dresses, and boys’ and girls’ footwear. Over the year, apparel prices were up 0.9 percent in the Chicago area. 

The other goods and services component rose 2.3 percent in September. Higher cigarette prices were a contributing factor. Over the year, this component increased 5 percent following a smaller 3.1 percent increase in the September 2007-08 period.

The cost of medical care rose 0.6 percent during September and stood 8.0 percent higher than a year ago. The latest annual gain compares with a smaller 2.2 percent increase over the previous September-September period.

The education and communication component rose 0.5 percent in September.  In the previous six August-September periods, increases in this component ranged from 0.8 to 1.1 percent. The education and communication component increased 2.6 percent from a year ago, less than the 3.8 percent gain in the prior 12-month period ended in September 2008. 

The housing component was down 0.5 percent in September as shelter costs declined 0.5 percent and prices for household furnishings and operations fell 0.6 percent. Fuel and utility costs were unchanged over the month as a 3.1 percent increase in the electricity index was offset by a 5.2 percent drop in the utility (pipe) gas service index. On an annual basis, the housing component was down 2.5 percent. Most of this annual decline was the result of a 44.8 percent drop in the utility (pipe) gas service index over-the-year. In the previous 12-month period ended in September 2008, the utility (pipe) gas service index rose 36 percent moving overall housing costs up 2.5 percent in the September 2007-08 period.

The transportation component fell 0.4 percent in September. Gasoline prices were down 4.7 percent from August to September and stood 34.2 percent below their year ago levels. Transportation costs in general were down 11.6 percent from a year ago, turning around the 9.7 percent increase in the previous 12-month period ended in September 2008.

Recreation costs were down 0.4 percent in September and stood 0.6 percent below their year ago September level.

Food and beverage prices in the Chicago area were unchanged in September. The food at home index (grocery food items) fell 0.3 percent and the food away from home index edged up 0.1 percent. Alcoholic beverage prices were up 0.7 percent. Over the past 12 months, food and beverage prices gained only 0.9 percent after rising 6.5 percent in the previous 12-month period. The food at home index declined 1.5 percent over-the-year while the indexes for both food away from home and alcoholic beverages rose 3.2 percent on an annual basis.

 

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Scheduled release date for the October 2009 CPI: Wednesday, November 18, 2009

Chicago-Gary-Kenosha, Ill.-Ind.-Wis. Combined Metropolitan Statistical Area (CMSA) includes Cook, DeKalb, DuPage, Grundy, Kane, Kankakee, Kendall, Lake, McHenry, and Will Counties in Illinois; Lake and Porter Counties in Indiana; and Kenosha County in Wisconsin.

BRIEF EXPLANATION OF THE CPI

The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market basket of goods and services. The Bureau of Labor Statistics publishes CPIs for two population groups: (1) a CPI for All Urban Consumers (CPI-U) which covers approximately 87 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 32 percent of the total population. The CPI-U includes, in addition to wage earners and clerical workers, groups such as professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, and retirees and others not in the labor force.

The CPI is based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors' and dentists' services, drugs, and the other goods and services that people buy for day-to-day living. Prices are collected in 87 urban areas across the country from about 50,000 housing units and approximately 23,000 retail establishments--department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments. All taxes directly associated with the purchase and use of items are included in the index. Prices of food, fuels, and a few other items are obtained every month in all 87 locations. Prices of most other commodities and services are collected every month in the three largest geographic areas and every other month in other areas. Prices of most goods and services are obtained by personal visits of the Bureau's trained representatives.

In calculating the index, price changes for the various items in each location are averaged together with weights that represent their importance in the spending of the appropriate population group. Local data are then combined to obtain a U.S. city average. Separate indexes are also published by size of city, by region of the country, for cross-classifications of regions and population-size classes, and for 27 local areas. Area indexes do not measure differences in the level of prices among cities; they only measure the average change in prices for each area since the base period.

The index measures price changes from a designated reference date (1982-84) that equals 100.0. An increase of 16.5 percent, for example, is shown as 116.5. This change can also be expressed in dollars as follows: the price of a base period "market basket" of goods and services in the CPI has risen from $10 in 1982-84 to $11.65.

For further details see the CPI home page on the Internet at www.bls.gov/cpi and the BLS Handbook of Methods, Chapter 17, The Consumer Price Index, available on the Internet at www.bls.gov/opub/hom/homch17_a.htm.

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Last Modified Date: October 15, 2009