The Consumer Price Index for All Urban Consumers (CPI-U) for Washington-Arlington-Alexandria increased 1.2 percent from May to July, the U.S. Bureau of Labor Statistics reported today. Alexandra Hall Bovee, the Bureau’s regional commissioner, noted that the recent increase was due largely to continuing higher prices for new and used motor vehicles, reflected in an increase in the all items less food and energy index, up 0.8 percent. The energy index and the food index also increased since May, up 5.9 and 1.5 percent, respectively. (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 4.4 percent, the largest year-over-year increase since 2008. The rise was due mostly to a 3.6-percent rise in the all items less food and energy index. (See chart 1 and table A.) Since July 2020, the energy index and the food index also increased, up 22.2 and 3.2 percent, respectively. (See table 1.)

Food

Following a 0.4-percent increase from March to May, the food index advanced 1.5 percent over the last 2 months. Prices for food at home increased 1.6 percent, and those for food away from home rose 1.3 percent. Within the food at home component, prices were higher for the spices, seasonings, condiments, sauces index, among others, while prices were lower for several categories including carbonated drinks and citrus fruits.

Food prices advanced 3.2 percent over the year. Prices continued to be higher for food away from home (6.3 percent)⸺the category’s over-the-year increases ranged from 4.6 to 6.5 percent since last summer, while they inched up for food at home (0.1 percent) since July 2020.

Energy

Since May, the energy index, which includes prices for household and transportation fuels, increased 5.9 percent, reflecting higher prices for electricity (9.7 percent), the largest such increase in 6 years. Prices were also higher for gasoline (3.0 percent⸺the smallest such increase this year) and utility (piped) gas (8.7 percent) over the past 2 months.

Energy prices jumped 22.2 percent since July 2020. The rise was due almost entirely to higher gasoline prices, up 39.5 percent but well below its 51.7 percent peak in May. Over the year, prices also increased for utility (piped) gas service, up 20.6 percent, and for electricity, up 3.0 percent.

All items less food and energy

The index for all items less food and energy rose 0.8 percent since May. The advance was led by higher prices for new and used motor vehicles (7.4 percent), dominated by higher prices for used cars and trucks (11.9 percent). Prices were also higher for shelter (0.4 percent), led by owners’ equivalent rent of residences (0.7 percent). Apparel prices were down 4.3 percent, helping to offset the overall increase.

Since July 2020, the index for all items less food and energy rose 3.6 percent. Prices were higher for new and used motor vehicles (21.6 percent), due mostly to prices for used cars and trucks (41.9 percent). Prices also increased for shelter (1.3 percent) and recreation (7.3 percent) since July 2020.

Table A. Washington-Arlington-Alexandria, DC-VA-MD-WV, CPI-U 2-month and 12-month percent changes, all items index, not seasonally adjusted

Month	2017		2018		2019		2020		2021
	2-month	12-month	2-month	12-month	2-month	12-month	2-month	12-month	2-month	12-month
January	0.2	1.5	0.9	2.2	0.5	0.8	0.5	1.6	0.7	1.5
March	0.4	1.1	-0.1	1.8	0.7	1.6	-0.4	0.4	0.7	2.6
May	0.0	0.3	0.7	2.5	0.6	1.6	0.1	-0.1	1.3	3.8
July	0.0	0.5	0.1	2.5	-0.3	1.2	0.6	0.8	1.2	4.4
September	0.9	1.7	0.4	2.0	0.1	0.9	0.6	1.2
November	0.0	1.5	-0.7	1.3	-0.2	1.5	0.0	1.4

The Consumer Price Index for August 2021 is scheduled to be released on Tuesday, September 14, 2021, at 8:30 a.m. (EDT).

Technical Note

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 93 percent of the total U.S. population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 29 percent of the total U.S. 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 75 urban areas across the country from about 6,000 housing units and approximately 22,000 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; for most of the CPI-U the reference base is 1982-84 equals 100. An increase of 7 percent from the reference base, for example, is shown as 107.000.  Alternatively, that relationship can also be expressed as the price of a base period market basket of goods and services rising from $100 to $107. For further details see the CPI home page on the Internet at www.bls.gov/cpi and the CPI section of the BLS Handbook of Methods available on the internet at www.bls.gov/opub/hom/cpi/.

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 Washington-Arlington-Alexandria, DC-VA-MA-WV, Core Based Statistical Area includes the District of Columbia; the counties of Calvert, Charles, Frederick, Montgomery, and Prince George’s in Maryland; the cities of Alexandria, Fairfax, Falls Church, Fredericksburg, Manassas, and Manassas Park and the counties of Arlington, Clarke, Culpeper, Fairfax, Fauquier, Loudoun, Prince William, Rappahannock, Spotsylvania, Stafford, and Warren in Virginia; and the county of Jefferson in West Virginia.

Information in this release will be made available to individuals with sensory impairments upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods, Washington-Arlington-Alexandria, DC-VA-MD-WV, (1982-84=100 unless otherwise noted) (not seasonally adjusted)

Expenditure category	Indexes				Percent change from
	Historical data	May 2021	Jun. 2021	Jul. 2021	Jul. 2020	May 2021	Jun. 2021
All items		275.822		279.099	4.4	1.2
Food and beverages		265.739		269.241	3.3	1.3
Food		272.558		276.611	3.2	1.5
Food at home		251.776	256.650	255.928	0.1	1.6	-0.3
Cereals and bakery products		321.989		332.785	-0.9	3.4
Meats, poultry, fish, and eggs		281.234		287.930	0.4	2.4
Dairy and related products		246.835		243.100	-2.9	-1.5
Fruits and vegetables		263.719		266.037	0.7	0.9
Nonalcoholic beverages and beverage materials(1)		218.427		225.132	2.0	3.1
Other food at home		207.585		210.211	0.2	1.3
Food away from home		298.792		302.782	6.3	1.3
Alcoholic beverages		201.312		200.346	4.4	-0.5
Housing		286.413		289.367	2.2	1.0
Shelter		343.512	344.241	344.851	1.3	0.4	0.2
Rent of primary residence		376.500	377.357	376.998	-0.4	0.1	-0.1
Owners' equivalent rent of residences(2)		350.763	352.846	353.149	1.1	0.7	0.1
Owners' equivalent rent of primary residence(2)		350.763	352.846	353.149	1.1	0.7	0.1
Fuels and utilities		244.459		262.851	7.8	7.5
Household energy		188.426	201.418	205.462	8.2	9.0	2.0
Energy services		192.824	206.598	210.935	8.2	9.4	2.1
Electricity		201.235	217.673	220.790	3.0	9.7	1.4
Utility (piped) gas service		163.258	171.579	177.531	20.6	8.7	3.5
Household furnishings and operations		115.467		116.723	5.0	1.1
Apparel		156.839		150.056	4.3	-4.3
Transportation		230.898		238.844	13.6	3.4
Private transportation		235.825		246.441	15.7	4.5
New and used motor vehicles(3)		107.464		115.437	21.6	7.4
New vehicles(1)		203.406		208.571	6.6	2.5
Used cars and trucks(1)		384.967		430.623	41.9	11.9
Motor fuel		281.278	286.390	289.802	39.4	3.0	1.2
Gasoline (all types)		278.360	283.402	286.796	39.5	3.0	1.2
Gasoline, unleaded regular(4)		271.977	276.832	280.275	40.7	3.1	1.2
Gasoline, unleaded midgrade(4)(5)		284.637	290.898	293.692	34.4	3.2	1.0
Gasoline, unleaded premium(4)		296.172	301.934	304.597	32.1	2.8	0.9
Motor vehicle insurance(1)		822.360		822.360	-8.4	0.0
Medical care		497.740		498.539	0.9	0.2
Recreation(3)		118.127		118.505	7.3	0.3
Education and communication(3)		157.126		157.681	2.0	0.4
Tuition, other school fees, and child care(1)		1,447.953		1,456.345	2.9	0.6
Other goods and services		442.296		454.844	5.3	2.8
Commodity and service group
Commodities		191.232		194.259	7.8	1.6
Commodities less food and beverages		153.658		156.423	11.8	1.8
Nondurables less food and beverages		200.086		199.425	9.9	-0.3
Durables		109.578		114.111	13.9	4.1
Services		351.853		355.176	2.4	0.9
Special aggregate indexes
All items less shelter		248.215		252.093	5.9	1.6
All items less medical care		265.336		268.729	4.7	1.3
Commodities less food		155.798		158.368	11.3	1.6
Nondurables		231.839		233.402	5.7	0.7
Nondurables less food		199.732		199.036	9.2	-0.3
Services less rent of shelter(2)		373.014		378.685	3.7	1.5
Services less medical care services		336.999		340.493	2.6	1.0
Energy		232.988	242.815	246.669	22.2	5.9	1.6
All items less energy		282.789		285.427	3.6	0.9
All items less food and energy		285.861		288.213	3.6	0.8
Footnotes (1) Indexes on a November 1977=100 base. (2) Indexes on a November 1982=100 base. (3) Indexes on a December 1997=100 base. (4) Special index based on a substantially smaller sample. (5) Indexes on a December 1993=100 base.