The Detroit-Ann Arbor-Flint, MI Consumer Price Index for All Urban Consumers (CPI-U) increased 1.1 percent from December 2007 to February 2008, the U.S. Department of Labor’s Bureau of Labor Statistics reported today. This was above the 0.8 percent gain for the same two-month period a year ago. On an annual basis, the Detroit area CPI-U rose 2.2 percent. This follows a 1.7 percent increase in the previous 12-month period ended in February 2007. The February 2008 Detroit-Ann Arbor-Flint, MI CPI-U was 202.378 (1982-84=100).

The 1.1 percent increase in the Detroit area CPI-U was attributed to increases in the components for housing and apparel, commented Jay A. Mousa, regional commissioner for the Bureau in Chicago. The component for transportation also rose, but with little impact. Costs for food and beverages and for recreation recorded little change from December. The components for medical care, education and communication, and other goods and services were lower over the past two months.

The housing component jumped 2.1 percent from December to February. Increases in costs for shelter (2.5 percent), household furnishings and operations (2.9 percent), and electricity (0.9 percent) were contributing factors. The index for utility (piped) gas service was down 2.8 percent from its December level, only partially offsetting these increases. On an annual basis, the housing component gained 1.5 percent, a sharp contrast to the 0.1 percent decline in the previous 12-month period ended in February 2007. Among housing subcategories, shelter costs were up 1.2 percent, fuel and utility costs increased 3.0 percent, and prices for household furnishings and operation were higher by 2.6 percent over the year.

Apparel prices increased 7.2 percent from December to February, the largest increase for this two-month period since the 8.0 percent gain recorded in 2002. In spite of the latest two-month price increase, apparel prices were 1.9 percent lower than a year ago. This latest decline contrasts with a 4.5 percent gain from February 2006 to February 2007.

The transportation component gained 0.3 percent during the bimonthly period. Most of this increase was attributed to a 1.6 percent rise in the gasoline index. Prices at the gasoline pumps were 30.1 percent higher over the year, a much larger gain than the 1.6 percent annual increase reported in February 2007. Transportation costs in general were 6.5 percent higher over the year. This compares with a 2.0 percent gain in the 12-month period ended in February 2007.

The food and beverages component was little changed (up 0.1 percent) from December to February. Grocery food prices (food at home index) advanced 0.7 percent while the food away from home index (restaurant, cafeteria, and vending purchases) declined 0.5 percent. The costs of alcoholic beverages declined 0.1 percent. Over the past 12 months, the cost of both grocery food items and food away from home were up 1.7 percent. Alcoholic beverage prices were 0.4 percent higher over the year. The overall food and beverages component increased 1.6 percent over the past 12 months. In the previous annual period, food and beverages prices advanced 2.9 percent.

The recreation component was little changed, rising a scant 0.1 percent during the bimonthly period. On an annual basis, recreation costs fell 2.8 percent after rising 3.4 percent in the previous annual period (February 2006-07).

The cost of medical care fell 1.1 percent from December to February, a sharp contrast to the 3.0 percent gain during the same period a year ago. On an annual basis, the medical care component was 2.6 percent higher, a smaller gain than the 4.3 and 5.6 percent annual increases recorded in February 2006 and 2007, respectively.

The education and communication component declined 0.8 percent during this bimonthly period, but was ahead 2.2 percent for the year. The other goods and services component was down 0.5 percent from December-February and was up 1.6 percent for the year.