The Consumer Price Index for All Urban Consumers (CPI-U) in the Detroit-Ann Arbor-Flint area rose 0.9 percent from August to October, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the food index increased 0.6 percent over the bi-monthly period, while the energy index declined 1.0 percent. The index for all items less food and energy increased 1.1 percent from August to October. Among the indexes within the all items less food and energy category, prices were higher for shelter, apparel, and 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 2.0 percent. (See chart 1 and table A.) The food index and the energy index rose 0.9 percent and 1.8 percent, respectively, over the year. The index for all items less food and energy rose 2.2 percent over the year. (See table 1.)

Food

Food prices rose 0.6 percent from August to October. Of the two components within the food index, prices for food at home (groceries) increased 0.5 percent and prices for food away from home (restaurant, cafeteria, and vending purchases) were 0.8 percent higher.

Over the year, food prices in the Detroit area were up 0.9 percent. Prices for food away from home rose 2.9 percent, while grocery prices were down 0.5 percent from October 2016.

Energy

The energy index for Detroit was 1.0 percent lower from August to October, primarily due to electricity prices falling 5.6 percent. Utility (piped) gas service costs declined 0.1 percent. In contrast, gasoline prices were up 0.6 percent.

From October 2016 to October 2017, overall energy prices rose 1.8 percent. Gasoline prices increased 7.9 percent over the year. The utility (piped) gas service index rose 4.3 percent, while the electricity index fell 9.1 percent.

All items less food and energy

The index for all items less food and energy increased 1.1 percent from August to October. Among the index’s components, prices were higher for owners’ equivalent rent of residences (0.9 percent), lodging away from home, apparel (5.0 percent), and education and communication (1.8 percent).

Over the year, the index for all items less food and energy rose 2.2 percent. A 6.1-percent increase in the index for owners’ equivalent rent of residences was a major contributing factor.

Table A. Detroit 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	1.1	1.9	1.1	0.7	-0.7	-1.8	0.3	0.9	0.9	3.0
April	0.0	1.3	1.3	2.0	1.2	-1.9	1.4	1.1	0.7	2.3
June	1.2	3.3	0.5	1.3	0.0	-2.4	1.2	2.3	0.0	1.1
August	-0.7	1.3	-1.0	1.0	0.6	-0.9	-0.1	1.7	0.1	1.3
October	-0.1	0.7	-0.1	1.0	0.1	-0.7	0.2	1.7	0.9	2.0
December	-0.7	0.8	-1.8	-0.1	-1.2	-0.1	-0.6	2.4

The December 2017 Consumer Price Index for Detroit is scheduled to be released on Friday, January 12, 2018.

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.