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17-13-CHI
Wednesday, January 18, 2017

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Consumer Price Index, Cincinnati-Hamilton — Second Half 2016

Local prices up 1.9 percent over the year

The Consumer Price Index for All Urban Consumers (CPI-U) in the Cincinnati-Hamilton area increased 1.9 percent from the second half of 2015 to the second half of 2016, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the all items less food and energy index was 2.6 percent higher compared to its second half 2015 level as price increases were noted in the categories for shelter and medical care. Food prices were 0.6 percent lower over the year while the index for energy increased 0.9 percent. (See chart 1.)

Food

The 0.6-percent decline in food prices over the year was attributed to a 2.7-percent decrease in food at home (grocery) prices. Costs for food eaten away from home (restaurant, cafeteria, and vending purchases), on the other hand, were up 2.3 percent compared to their year ago levels. In the previous annual period (second half 2014 to second half 2015), food prices were up 0.7 percent in the Cincinnati area.

Energy

Costs for electricity rose 6.3 percent and utility (piped) gas service costs were up 0.6 percent from their second half 2015 levels, contributing to the 0.9-percent increase in energy prices over the year. Gasoline prices, on the other hand, were down 4.2 percent compared to their second half 2015 levels. In the previous annual period, energy costs had fallen 12.4 percent.

All items less food and energy

The 2.6- percent over-the-year increase in the all items less food and energy index was primarily due to a 2.4-percent gain in shelter costs and a 7.7-percent increase in medical care prices. Recreation (4.8 percent) and apparel (7.0 percent) also contributed to the rise in the aggregate all items less food and energy index.

The first half 2017 Consumer Price Index for Cincinnati-Hamilton is scheduled to be released Friday, July 14, 2017.


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 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 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
2nd half 2016 from-
2nd half
2015
1st half
2016
2nd half
2016
2nd half
2015
1st half
2016

Expenditure category

 
 

All items

223.768 224.871 227.927 1.9 1.4

All items (1967=100)

692.387 695.799 705.255 - -

Food and beverages

220.788 220.140 219.781 -0.5 -0.2

Food

217.530 216.751 216.196 -0.6 -0.3

Food at home

212.216 209.126 206.539 -2.7 -1.2

Food away from home

228.976 231.605 234.263 2.3 1.1

Alcoholic beverages

246.798 247.588 249.569 1.1 0.8

Housing

207.636 209.499 212.323 2.3 1.3

Shelter

238.064 239.862 243.841 2.4 1.7

Rent of primary residence(1)

242.803 244.768 249.311 2.7 1.9

Owners' equiv. rent of residences(1)(2)

238.344 240.588 245.297 2.9 2.0

Owners' equiv. rent of primary residence(1)(2)

238.344 240.588 245.297 2.9 2.0

Fuels and utilities

223.026 225.311 231.635 3.9 2.8

Household energy

183.822 186.475 192.717 4.8 3.3

Energy services(1)

189.554 192.795 199.184 5.1 3.3

Electricity(1)

193.153 199.454 205.313 6.3 2.9

Utility (piped) gas service(1)

171.219 164.191 172.189 0.6 4.9

Household furnishings and operations

114.913 117.333 115.082 0.1 -1.9

Apparel

141.160 144.038 151.042 7.0 4.9

Transportation

199.744 197.109 198.321 -0.7 0.6

Private transportation

196.559 193.666 195.197 -0.7 0.8

Motor fuel

225.326 199.362 215.459 -4.4 8.1

Gasoline (all types)

224.337 198.855 214.872 -4.2 8.1

Gasoline, unleaded regular(3)

229.042 202.113 218.077 -4.8 7.9

Gasoline, unleaded midgrade(3)(4)

222.655 201.443 219.556 -1.4 9.0

Gasoline, unleaded premium(3)

207.829 192.189 210.113 1.1 9.3

Medical care

471.922 491.865 508.081 7.7 3.3

Recreation(5)

126.369 128.820 132.442 4.8 2.8

Education and communication(5)

130.372 128.352 129.374 -0.8 0.8

Other goods and services

492.263 492.706 498.211 1.2 1.1
 

Commodity and service group

 
 

All items

223.768 224.871 227.927 1.9 1.4

Commodities

175.740 175.107 176.784 0.6 1.0

Commodities less food & beverages

152.388 151.830 154.320 1.3 1.6

Nondurables less food & beverages

187.769 185.716 194.868 3.8 4.9

Durables

118.340 119.028 116.238 -1.8 -2.3

Services

274.938 277.669 282.204 2.6 1.6
 

Special aggregate indexes

 
 

All items less medical care

212.346 212.581 215.034 1.3 1.2

All items less shelter

220.240 221.073 223.792 1.6 1.2

Commodities less food

156.115 155.549 158.032 1.2 1.6

Nondurables

205.375 203.887 208.471 1.5 2.2

Nondurables less food

192.761 190.707 199.400 3.4 4.6

Services less rent of shelter(2)

325.637 329.545 334.462 2.7 1.5

Services less medical care services

257.779 260.135 264.203 2.5 1.6

Energy

203.850 194.644 205.585 0.9 5.6

All items less energy

228.585 230.987 233.397 2.1 1.0

All items less food and energy

232.015 235.036 238.029 2.6 1.3

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.
Note: Data not seasonally adjusted.
 

 

Last Modified Date: Wednesday, January 18, 2017