The Consumer Price Index for All Urban Consumers (CPI-U) for Philadelphia-Wilmington-Atlantic City inched down 0.1 percent from October to December, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Sheila Watkins noted that lower prices for all items less food and energy (-0.5 percent) were nearly offset by higher prices for energy (3.5 percent) and food (0.2 percent) since October. (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 CPI-U increased 0.8 percent. (See chart 1 and table A.) The over-the-year rise was led by increases in the energy index (7.2 percent) and the food index (1.8 percent). Prices for all items less food and energy also rose since December 2016, up 0.1 percent. (See table 1.)

Food

Following a 0.3-percent rise from August to October, the food index edged up 0.2 percent over the last two months. Prices were higher for food away from home, up 0.4 percent since October. Food at home prices were unchanged over the last two months.

Over the year, the food index increased 1.8 percent. Prices for food away from home rose 2.5 percent, and those for food at home increased 1.3 percent.

Energy

The energy index, which includes prices for household and transportation fuels, increased 3.5 percent since October. This was reflected by higher prices for electricity and utility (piped) gas service, up 3.5 and 7.1 percent, respectively, over the last two months. Prices were also higher for gasoline, up 1.8 percent since October.

Over the year, the energy index rose 7.2 percent, led by an 11.4-percent advance in gasoline prices. Prices were also higher for utility (piped) gas service (9.4 percent), while those for electricity declined 0.4 percent over the year.

All items less food and energy

The index for all items less food and energy decreased 0.5 percent from October to December, led by lower prices for apparel (-10.8 percent). Higher prices for new and used motor vehicles, along with those for medical care (0.8 percent), moderated the decrease in the all items less food and energy index since October.

Since December 2016, the index for all items less food and energy inched up 0.1 percent. This was largely due to higher prices for shelter (1.2 percent). Lower prices for education and communication (-3.4 percent) and apparel (-8.2 percent), among others, moderated the 12-month increase in the all items less food and energy index.

Table A. Philadelphia CPI-U 2-month and 12-month percent changes, all items index, not seasonally adjusted

Month	2013		2014		2015		2016		2017
	2-month	12-month	2-month	12-month	2-month	12-month	2-month	12-month	2-month	12-month
February	0.7	1.8	0.5	1.0	-0.2	-0.1	0.3	0.3	0.7	2.1
April	0.1	1.1	0.5	1.4	0.5	0.0	0.9	0.6	0.0	1.3
June	0.3	1.5	0.6	1.8	0.8	0.2	0.3	0.1	-0.3	0.7
August	0.5	1.1	0.0	1.3	-0.5	-0.3	-0.2	0.3	0.5	1.4
October	-0.4	0.3	-0.1	1.6	-0.3	-0.5	0.6	1.3	0.0	0.8
December	0.1	1.2	-0.8	0.6	-0.6	-0.2	-0.1	1.7	-0.1	0.8

The Consumer Price Index for February 2018 is scheduled to be released Tuesday, March 13, 2018 at 8:30 am (ET).

Technical Note

The Consumer Price Index for Philadelphia-Wilmington-Atlantic City is published bi-monthly. 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 Philadelphia-Wilmington-Atlantic City, Pa.-N.J.-Del.-Md., Consolidated Metropolitan Statistical Area includes Bucks, Chester, Delaware, Montgomery, and Philadelphia Counties in Pennsylvania; Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, and Salem Counties in New Jersey; New Castle County in Delaware; and Cecil County in Maryland.

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Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods, Philadelphia-Wilmington-Atlantic City, Pa.-N.J.-Del.-Md., (1982-84=100 unless otherwise noted) (not seasonally adjusted)

Expenditure category	Indexes				Percent change from
	Historical data	Oct. 2017	Nov. 2017	Dec. 2017	Dec. 2016	Oct. 2017	Nov. 2017
All items		248.956		248.617	0.8	-0.1
All items (1967 = 100)		719.219		718.240
Food and beverages		233.750		233.891	1.5	0.1
Food		233.726		234.078	1.8	0.2
Food at home		239.047	236.981	239.043	1.3	0.0	0.9
Food away from home		220.996		221.804	2.5	0.4
Alcoholic beverages		231.057		228.725	-1.1	-1.0
Housing		256.047		256.561	1.2	0.2
Shelter		320.165	319.125	319.756	1.2	-0.1	0.2
Rent of primary residence(1)		297.471	297.606	298.183	2.0	0.2	0.2
Owners' equivalent rent of residences(1)(2)(3)		327.373	327.416	327.825	1.2	0.1	0.1
Owners' equivalent rent of primary residence(1)(2)(3)		327.373	327.416	327.825	1.2	0.1	0.1
Fuels and utilities		199.831		206.856	3.9	3.5
Household energy		164.005	168.224	171.926	4.2	4.8	2.2
Gas (piped) and electricity(1)		173.116	177.480	181.176	2.6	4.7	2.1
Electricity(1)		178.165	181.383	184.437	-0.4	3.5	1.7
Utility (piped) gas service(1)		153.881	160.118	164.791	9.4	7.1	2.9
Household furnishings and operations		111.034		109.325	-3.3	-1.5
Apparel		113.454		101.223	-8.2	-10.8
Transportation		208.203		208.271	2.5	0.0
Private transportation		206.859		207.831	2.5	0.5
Motor fuel		232.260	242.448	236.495	11.5	1.8	-2.5
Gasoline (all types)		228.974	239.019	233.093	11.4	1.8	-2.5
Gasoline, unleaded regular(4)		225.732	235.975	229.884	11.5	1.8	-2.6
Gasoline, unleaded midgrade(4)(5)		235.779	243.370	239.850	10.8	1.7	-1.4
Gasoline, unleaded premium(4)		233.491	241.552	236.999	11.0	1.5	-1.9
Medical care		510.080		514.200	2.7	0.8
Recreation(6)		121.572		122.355	-0.4	0.6
Education and communication(6)		130.172		130.003	-3.4	-0.1
Other goods and services		534.786		538.332	2.3	0.7
Commodity and service group
Commodities		177.048		176.379	1.2	-0.4
Commodities less food and beverages		145.735		144.784	0.9	-0.7
Nondurables less food and beverages		188.403		185.740	2.3	-1.4
Durables		99.679		100.252	-1.2	0.6
Services		321.932		321.884	0.6	0.0
Special aggregate indexes
All items less shelter		225.651		225.333	0.6	-0.1
All items less medical care		237.977		237.436	0.6	-0.2
Commodities less food		148.777		147.782	0.8	-0.7
Nondurables		212.373		210.949	1.9	-0.7
Nondurables less food		190.877		188.236	2.1	-1.4
Services less rent of shelter(2)		330.776		331.296	0.1	0.2
Services less medical care services		307.685		307.524	0.6	-0.1
Energy		188.497	194.830	195.141	7.2	3.5	0.2
All items less energy		257.507		256.403	0.3	-0.4
All items less food and energy		264.177		262.820	0.1	-0.5
Footnotes (1) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator. (2) Indexes on a December 1982=100 base. (3) This index series underwent a change in composition in January 2010. The expenditure class now includes weight from secondary residences, and has been re-titled "Owners' equivalent rent of residences." The item stratum "Owners' equivalent rent of primary residence" excludes secondary residences. (4) Special index based on a substantially smaller sample. (5) Indexes on a December 1993=100 base. (6) Indexes on a December 1997=100 base.
Note: Index applies to a month as a whole, not to any specific date.