FOR FURTHER INFORMATION:                             TRANSMISSION OF MATERIAL IN
Carlo Fioretti, Economist                            THIS RELEASE IS EMBARGOED
(214) 767-6970                                       UNTIL: 7:30 A.M. (CT),
http://www.bls.gov/ro6/home.htm                      Friday, March 14, 2008


                       FEBRUARY 2008 CONSUMER PRICE INDEX
                       HOUSTON-GALVESTON-BRAZORIA, TEXAS

     Prices in the Houston-Galveston-Brazoria area rose 0.7 percent during 
January and February, the Bureau of Labor Statistics of the U.S. Department of 
Labor reported today.  Regional Commissioner Stanley W. Suchman noted that 
increases occurred in five of the eight major categories, with an advance in 
housing being the largest factor.  During the year ended in February 2008, 
overall prices increased 3.5 percent and the index for all items less food and 
energy (frequently referred to as the core index) advanced 2.0 percent.  These 
data are based on the Consumer Price Index for All Urban Consumers (CPI-U).




     A 1.9-percent increase in the housing index had the largest impact on the 
overall CPI during the first two months of 2008.  The biggest contributor to 
the housing gain was an increase shelter costs which rose 2.5 percent.  The 
index for rent of a primary residence (renters’ costs) advanced 1.5 percent and 
owners’ equivalent rent (homeowners’ costs) increased 1.1 percent.  Charges for 
hotels and motels rose more sharply and pushed the shelter rate even higher.  
Prices for household furnishings and operations provided additional upward 
momentum with a 0.6-percent gain.  The cost of fuels and utilities edged up 0.2 
percent in January and February as natural gas costs rose 5.8 percent and 
electricity prices slipped 0.8 percent.  On an annual basis, movements within 
the housing category were varied as natural gas costs climbed 21.8 percent, 
prices for household furnishings and operations increased 3.5 percent, shelter 
costs gained 3.2 percent, and electricity prices fell 10.7 percent.  Combined, 
these movements left total housing costs 2.0 percent above a year ago.  

     The cost of food and beverages advanced 0.9 percent in January and 
February, matching the increase registered in the last two months of 2007.  The 
cost of alcoholic beverages rose 1.7 percent during the latest two-month period 
while the cost of food away from home (restaurant meals) increased 1.4 percent.  
Food at home (grocery) prices edged up 0.2 percent with higher prices recorded 
for fats and oils, apples, bread, and chicken.  These increases were partially 
offset by price declines for beef and veal, as well as breakfast cereal.  Over 
the year, the cost of alcoholic beverages rose 6.5 percent, grocery costs 
increased 4.6 percent, and the price of restaurant meals advanced 3.8 percent.  
The overall food and beverages index was 4.4 percent above the level recorded 
in February 2007.  

     The transportation index rose 0.3 percent during the first two months of 
2008, primarily as a result of a 1.8-percent increase in the cost of gasoline.  
The average price for a gallon of gasoline in the Houston area stood at $2.983 
in February.  Partially countering the gasoline increase were lower prices for 
motor vehicle insurance and for leased cars and trucks.  Over the year, 
gasoline prices climbed 38.3 percent, helping to push the total transportation 
index 10.7 percent higher than February 2007.

     Higher prices were registered in two other major categories during the 
first two months of 2008 but their contributions to the overall CPI increase 
were not as substantial.  The education and communication index increased 0.5 
percent in January and February, mainly as a result of higher costs for 
internet services and personal computers.  During the year ended in February 
2008, prices for education and communication rose 2.6 percent.  The other goods 
and services index also increased 0.5 percent during the first two months of 
2008, due in part to higher prices for cigarettes.  During the last 12 months, 
the cost of other goods and services rose 3.5 percent.  

     Partially countering these increases, lower prices were registered in the 
three remaining CPI components during January and February.  The largest 
decline was in the recreation index which fell 1.5 percent.  Despite the latest 
decrease, recreation costs were 0.6 percent above a year ago.  Medical care 
costs fell 1.3 percent in January and February due, in part, to declining 
prices of nonprescription medical equipment and supplies.  During the year 
ended in February, the medical care index was up 2.0 percent.  The cost of 
apparel and upkeep fell for the second consecutive two-month period, down 1.0 
percent in January and February.  Individual movements were mixed within this 
component and included lower prices for girls’ apparel, but higher prices for 
boys’ and girls’ footwear.  Clothing costs have fallen in four of the last five 
bimonthly periods and as a result were 6.7 percent below a year ago.  

     The CPI-U for the Houston-Galveston-Brazoria area stood at 187.585 on the 
1982-84=100 reference base, meaning that a market basket of goods and services 
that averaged $100.00 in 1982-84 would have cost $187.59 in February 2008.

     The Houston-Galveston-Brazoria Consolidated Metropolitan Statistical Area 
(CMSA) includes Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, 
Montgomery, and Waller Counties.  Local area CPI indexes are by-products of the 
national CPI program.  Because each local area index is a small subset of the 
national index, the sample size is smaller and therefore subject to 
substantially more sampling and other measurement error than the national 
index.  In addition, local indexes are not adjusted for seasonal influences.  
As a result, local area indexes show greater volatility than the national 
index, although their long-term trends are quite similar.


Next Release Date: The Houston-Galveston-Brazoria March CPI for Energy, 
Food At Home, and Shelter will be released on April 16, 2008.

Last Modified Date: March 14, 2008