Incorrect prices for prescription drugs were used for the CPI-U and CPI-W indexes from May through August 2016 in a number of areas. Several indexes were affected, including the all items and medical care indexes. A list of the series affected can be found at www.bls.gov/bls/errata/cpi-price-corrections-10182016.htm, and the corrected data are available in the CPI database (www.bls.gov/cpi/data.htm).
Thursday, June 16, 2016
The Consumer Price Index for All Urban Consumers (CPI-U) in the Northeast advanced 0.3 percent in May, the U.S. Bureau of Labor Statistics reported today. Sheila Watkins, the Bureau’s regional commissioner, noted that the recent increase was due to a 0.2-percent rise in the all items less food and energy index and a 2.4-percent advance in the energy index. Partially offsetting the overall increase was a one-month decrease in the food index, down 0.4 percent. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the impact of seasonal influences.)
Over the last 12 months, the Northeast all items CPI-U increased 0.9 percent, due mostly to a 2.0-percent advance in the all items less food and energy index. Food prices also rose, up 0.2 percent over the year. (See chart 1 and table A.) The increase was moderated by a 9.5-percent decline in the energy index since May 2015.(See table 1.)
The food index fell 0.4 percent since April. Prices for one of its two components, food at home, decreased 0.8 percent, while prices for the other, food away from home, inched up 0.1 percent over the month.
From May 2015 to May 2016, the food index increased 0.2 percent. Prices for food away from home rose 2.6 percent over the year, while those for food at home declined 1.4 percent.
The energy index, which includes prices for household and transportation fuels, increased 2.4 percent since April, due to a 7.1-percent rise in gasoline prices. Prices for electricity and utility (piped) gas service decreased over the month, down 1.4 and 1.6 percent, respectively.
The energy index fell 9.5 percent since May 2015, led by a 14.4-percent drop in gasoline prices. Prices for electricity and utility (piped) gas service also decreased over the year, down 2.0 and 3.0 percent, respectively.
The index for all items less food and energy edged up 0.2 percent in May. The index’s increase was led by higher prices for shelter (0.4 percent). Prices for medical care also increased, up 0.3 percent over the month, while those for recreation and education and communication decreased, down 0.3 and 0.1 percent, respectively.
Over the year, the index for all items less food and energy increased 2.0 percent, led by higher prices for shelter (2.7 percent). Prices were also higher over the year for medical care (3.2 percent) and education and communication (2.0 percent), among others.
The Consumer Price Index for June 2016 is scheduled to be released Friday, July 15, 2016, at 8:30 a.m. (ET).
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 89 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 28 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. Each month, prices are collected in 87 urban areas across the country from about 4,000 housing units and approximately 26,000 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.
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/pdf/homch17.pdf.
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. Because the sample size of a local area is smaller, the local area index is 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. Note: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period.
The Northeast region is comprised of Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.
Information in this release will be made available to sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.
|Expenditure category||Indexes||Percent change from|
All items (December 1977 = 100)
Food and beverages
Food at home
Food away from home
Rent of primary residence (1)
Fuels and utilities
Energy services (1)
Utility (piped) gas service (1)
Household furnishings and operations
New and used motor vehicles (3)
New cars (4)
Used cars and trucks
Gasoline (all types)
Gasoline, unleaded regular (4)
Gasoline, unleaded premium (4)
Medical care commodities
Medical care services
Education and communication (3)
Other goods and services
Commodity and service group
Commodities less food and beverages
Nondurables less food and beverages
Special aggregate indexes
All items less shelter
All items less medical care
Commodities less food
Nondurables less food
Services less rent of shelter (2)
Services less medical care services
All items less energy
All items less food and energy
Note: Index applies to a month as a whole, not to any specific date.
Last Modified Date: Thursday, June 16, 2016