The Consumer Price Index for All Urban Consumers (CPI-U) in the Detroit-Ann Arbor-Flint area increased 0.3 percent from December to February, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Charlene Peiffer noted that the energy index decreased 5.6 percent while the food index rose 0.8 percent over the bi-monthly period. The index for all items less food and energy increased 0.8 percent from December to February. Among the indexes within the all items less food and energy category, prices were higher for recreation, shelter, and medical care, but lower for education and communication. (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 increased 0.9 percent. (See chart 1 and table A.) The energy index decreased 11.2 percent over the year primarily due to declines in gasoline prices. The index for all items less food and energy rose 2.3 percent over the year. (See table 1.)

Food

Food prices rose 0.8 percent from December to February following a 0.1 percent decrease over the previous bi-monthly period. Of the two components within the food index, prices for food at home (groceries) rose 1.0 percent and prices for food away from home (restaurant, cafeteria, and vending purchases) increased 0.4 percent.

On an annual basis, food prices in the Detroit area increased 0.4 percent. Grocery prices fell 0.1 percent while prices for food away from home rose 1.2 percent over the year.

Energy

The energy index for Detroit fell 5.6 percent from December to February. Prices declined for gasoline (-13.0 percent) and utility (piped) gas service [-0.5 percent (R)].

From February 2015 to February 2016, overall energy prices decreased 11.2 percent. Gasoline prices fell 24.3 percent and utility (piped) gas service costs were 12.8 percent (R) lower. In contrast, electricity costs rose 10.4 percent over the year.

All items less food and energy

The index for all items less food and energy increased 0.8 percent from December to February. Among the index’s components, prices were higher for recreation (3.8 percent), shelter (0.6), and medical care (1.7 percent). Education and communication costs were 0.8 percent lower over the bi-monthly period.

Over the year, the index for all items less food and energy increased 2.3 percent. Among the index’s components, medical care (8.7 percent), shelter (2.1 percent), and recreation (3.1 percent) recorded annual increases.

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

Month	2012		2013		2014		2015		2016
	2-month	12-month	2-month	12-month	2-month	12-month	2-month	12-month	2-month	12-month
February	0.6	3.9	1.1	1.9	1.1	0.7	-0.7	-1.8	0.3	0.9
April	0.6	2.1	0.0	1.3	1.3	2.0	1.2	-1.9
June	-0.8	0.4	1.2	3.3	0.5	1.3	0.0	-2.4
August	1.2	1.5	-0.7	1.3	-1.0	1.0	0.6	-0.9
October	0.5	2.4	-0.1	0.7	-0.1	1.0	0.1	-0.7
December	-0.7	1.4	-0.7	0.8	-1.8	-0.1	-1.2	-0.1

The April 2016 Consumer Price Index for Detroit is scheduled to be released on Tuesday, May 17, 2016.

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 89 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 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 6,000 housing units and approximately 24,000 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 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.