The Consumer Price Index for All Urban Consumers (CPI-U) in the Cincinnati-Hamilton area rose 2.2 percent from the first half of 2013 to the first half of 2014, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Charlene Peiffer stated that the energy index was 1.6 percent higher compared to its first half 2013 level, primarily due to increases in costs for electricity and utility (piped) gas service. Food prices were up 2.2 percent compared to their first half 2013 averages while the index for all items less food and energy increased 2.3 percent over the year. Among the categories within the all items less food and energy index, prices for shelter, medical care, and other goods and services were higher compared to their first half 2013 levels.

Food

Food prices rose 2.2 percent over the year after increasing 0.8 percent from the first half of 2012 to the first half of 2013. Within the food category, the index for food at home (groceries) was 1.7 percent higher while prices for food away from (restaurant, cafeteria, and vending purchases) increased 3.0 percent.

Energy

The energy index increased 1.6 percent from the first half of 2013 to the first half of 2014 after rising 2.0 percent over the prior annual period. Within the energy category, the indexes for electricity and utility (piped) gas service rose 4.1 percent and 5.3 percent, respectively, over the year. The index for gasoline was down 0.5 percent compared to its first half 2013 level.

All items less food and energy

The all items less food and energy index increased 2.3 percent over the year. Among the index’s components, higher costs were recorded for shelter (1.8 percent), medical care (4.1 percent), and other goods and services (4.3 percent).

The second half 2014 Consumer Price Index for Cincinnati-Hamilton is scheduled to be released February 2015.

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 88 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 29 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/homch17.htm.

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 Cincinnati-Hamilton, Ohio-Ky.-Ind. consolidated area covered in this release is comprised of Dearborn and Ohio Counties in Indiana; Boone, Campbell, Gallatin, Grant, Kenton, and Pendleton Counties in Kentucky; and Brown, Butler, Clermont, Hamilton and Warren Counties in Ohio.

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.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes for annual averages and percent changes for selected periods

Cincinnati-Hamilton, OH-KY-IN (1982-84=100 unless otherwise noted)

Item and Group	Annual average indexes		Percent change 2012 to 2013
	2012	2013
Expenditure category
All items	216.316	220.029	1.7
All items (1967=100)	669.331	680.821	-
Food and beverages	211.090	212.889	0.9
Food	207.969	209.859	0.9
Food at home	206.565	207.586	0.5
Food away from home	213.167	217.457	2.0
Alcoholic beverages	236.112	236.365	0.1
Housing	195.388	200.758	2.7
Shelter	222.561	229.006	2.9
Rent of primary residence (1)	222.532	229.487	3.1
Owners' equiv. rent of residences (1) (2)	224.470	230.581	2.7
Owners' equiv. rent of primary residence (1) (2)	224.470	230.581	2.7
Fuels and utilities	206.074	216.386	5.0
Household energy	170.770	179.568	5.2
Energy services (1)	174.608	184.151	5.5
Electricity (1)	174.161	184.291	5.8
Utility (piped) gas service (1)	167.804	175.493	4.6
Household furnishings and operations	115.768	113.966	-1.6
Apparel	146.886	141.160	-3.9
Transportation	209.800	210.574	0.4
Private transportation	208.623	207.883	-0.4
Motor fuel	324.398	319.025	-1.7
Gasoline (all types)	323.546	318.030	-1.7
Gasoline, unleaded regular (3)	334.674	328.721	-1.8
Gasoline, unleaded midgrade (3) (4)	312.155	307.413	-1.5
Gasoline, unleaded premium (3)	275.303	271.272	-1.5
Medical care	434.024	441.508	1.7
Recreation (5)	120.825	122.488	1.4
Education and communication (5)	131.194	135.860	3.6
Other goods and services	441.716	455.061	3.0
Commodity and service group
All items	216.316	220.029	1.7
Commodities	180.139	179.330	-0.4
Commodities less food & beverages	162.722	160.712	-1.2
Nondurables less food & beverages	210.394	207.042	-1.6
Durables	117.736	117.105	-0.5
Services	255.702	263.973	3.2
Special aggregate indexes
All items less medical care	206.294	209.832	1.7
All items less shelter	215.867	218.461	1.2
Commodities less food	165.984	164.024	-1.2
Nondurables	212.692	211.790	-0.4
Nondurables less food	213.767	210.581	-1.5
Services less rent of shelter (2)	301.159	311.558	3.5
Services less medical care services	239.609	247.780	3.4
Energy	239.476	242.013	1.1
All items less energy	216.365	220.427	1.9
All items less food and energy	219.215	223.738	2.1
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) Index is on a November 1982=100 base. (3) Special index based on a substantially smaller sample. (4) Indexes on a December 1993=100 base. (5) Indexes on a December 1997=100 base.
- Data not available.

Table 2. Consumer Price Index for All Urban Consumers (CPI-U): Indexes for semiannual averages and percent changes for selected periods

Cincinnati-Hamilton, OH-KY-IN (1982-84=100 unless otherwise noted)

Item and Group	Semiannual average indexes			Percent change to 1st half 2014 from-
	1st half 2013	2nd half 2013	1st half 2014	1st half 2013	2nd half 2013
Expenditure category
All items	218.797	221.262	223.680	2.2	1.1
All items (1967=100)	677.008	684.634	692.115	-	-
Food and beverages	211.953	213.825	216.670	2.2	1.3
Food	208.843	210.875	213.539	2.2	1.3
Food at home	206.771	208.402	210.195	1.7	0.9
Food away from home	215.764	219.151	222.206	3.0	1.4
Alcoholic beverages	236.721	236.009	241.219	1.9	2.2
Housing	198.632	202.884	202.905	2.2	0.0
Shelter	227.208	230.803	231.220	1.8	0.2
Rent of primary residence (1)	226.652	232.322	233.910	3.2	0.7
Owners' equiv. rent of residences (1) (2)	228.890	232.272	232.806	1.7	0.2
Owners' equiv. rent of primary residence (1) (2)	228.890	232.272	232.806	1.7	0.2
Fuels and utilities	211.789	220.982	220.651	4.2	-0.1
Household energy	175.728	183.408	183.691	4.5	0.2
Energy services (1)	180.018	188.284	187.686	4.3	-0.3
Electricity (1)	178.329	190.252	185.672	4.1	-2.4
Utility (piped) gas service (1)	175.978	175.009	185.316	5.3	5.9
Household furnishings and operations	112.965	114.968	115.592	2.3	0.5
Apparel	141.107	141.214	139.750	-1.0	-1.0
Transportation	210.972	210.176	215.548	2.2	2.6
Private transportation	208.345	207.420	212.176	1.8	2.3
Motor fuel	327.893	310.158	327.023	-0.3	5.4
Gasoline (all types)	327.064	308.996	325.409	-0.5	5.3
Gasoline, unleaded regular (3)	338.219	319.224	336.125	-0.6	5.3
Gasoline, unleaded midgrade (3) (4)	315.856	298.971	314.508	-0.4	5.2
Gasoline, unleaded premium (3)	278.457	264.086	278.792	0.1	5.6
Medical care	438.311	444.705	456.412	4.1	2.6
Recreation (5)	122.596	122.379	125.330	2.2	2.4
Education and communication (5)	135.498	136.223	135.702	0.2	-0.4
Other goods and services	450.615	459.508	470.000	4.3	2.3
Commodity and service group
All items	218.797	221.262	223.680	2.2	1.1
Commodities	179.213	179.447	182.361	1.8	1.6
Commodities less food & beverages	160.978	160.446	163.207	1.4	1.7
Nondurables less food & beverages	208.415	205.670	211.184	1.3	2.7
Durables	116.177	118.033	118.767	2.2	0.6
Services	261.611	266.334	268.306	2.6	0.7
Special aggregate indexes
All items less medical care	208.688	210.976	212.972	2.1	0.9
All items less shelter	217.544	219.377	222.844	2.4	1.6
Commodities less food	164.295	163.753	166.608	1.4	1.7
Nondurables	212.064	211.517	215.814	1.8	2.0
Nondurables less food	211.910	209.251	214.800	1.4	2.7
Services less rent of shelter (2)	308.910	314.206	319.065	3.3	1.5
Services less medical care services	245.422	250.138	251.875	2.6	0.7
Energy	243.801	240.225	247.603	1.6	3.1
All items less energy	218.984	221.870	224.093	2.3	1.0
All items less food and energy	222.202	225.275	227.404	2.3	0.9
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) Index is on a November 1982=100 base. (3) Special index based on a substantially smaller sample. (4) Indexes on a December 1993=100 base. (5) Indexes on a December 1997=100 base.
- Data not available.