Thursday, November 20, 2014
The Consumer Price Index for All Urban Consumers (CPI-U) in the Detroit-Ann Arbor-Flint area edged down 0.1 percent from August to October, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Charlene Peiffer noted that the energy index decreased 3.9 percent while the food index rose 1.1 percent over the bi-monthly period. The index for all items less food and energy rose 0.2 percent from August to October. Among the indexes within the all items less food and energy category, prices were higher for shelter; household furnishings and operations; and alcoholic beverages. The indexes for education and communication, and medical care were lower. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the impact of seasonal influences.)
Over the past 12 months the Detroit all items CPI-U rose 1.0 percent. (See chart 1 and table A.) The energy index fell 2.6 percent over the year due to annual declines in prices for gasoline electricity. The index for all items less food and energy rose 1.2 percent over the year. (See table 1.)
Food prices rose 1.1 percent from August to October following a 0.1 percent increase over the previous bi-monthly period. Between the two components of the food index, prices for food at home (groceries) and prices for food away from home (restaurant, cafeteria, and vending purchases) rose 1.7 percent and 0.4 percent, respectively. Grocery prices were up 4.1 percent from October a year ago, while prices for food away from home were 2.3 percent higher. From October 2013 to October 2014, overall food prices rose 3.4 percent in the Detroit area.
The energy index for Detroit fell 3.9 percent from August to October. Declines in the indexes for gasoline (-7.9 percent) and electricity (-0.9 percent) were contributing factors, while utility (piped) gas service rose by 3.7 percent from August to October.
From October 2013 to October 2014, overall energy prices decreased 2.6 percent. Prices for gasoline and electricity fell 5.0 percent and 6.0 percent, respectively, over the year. In contrast, costs for utility (piped) gas service were up 9.3 percent compared to last October.
The index for all items less food and energy rose 0.2 percent from August to October. Among the index’s components, prices were higher shelter (0.3 percent), household furnishings and operations (0.9 percent), and alcoholic beverages (3.1 percent). The indexes for education and communication (-2.0 percent), and medical care (-0.4 percent) were lower.
Over the year, the index for all items less food and energy rose 1.2 percent. An annual increase in shelter costs (3.5 percent) was the major contributing factor.
|Expenditure Category||Percent changes from preceding 2 months||12 mo. ended Oct. '14|
Food & beverages
Education & communication
Other goods & services
All items less food & energy
The December 2014 Consumer Price Index for Detroit is scheduled to be released on Friday, January 16, 2015, 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 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_a.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 Detroit-Ann Arbor-Flint, Mich. consolidated area covered in this release is comprised of Genesee, Lapeer, Lenawee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, and Wayne Counties in Michigan.
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.
|Item and Group||Indexes||Percent change from-|
All items (1967=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
Gasoline (all types)
Gasoline, unleaded regular (3)
Gasoline, unleaded premium (3)
Education and communication (5)
Other goods and services
Commodity and service group
Commodities less food & beverages
Nondurables less food & beverages
Special aggregate indexes
All items less medical care
All items less shelter
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
- Data not available
Last Modified Date: Thursday, November 20, 2014