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17-15-CHI
Wednesday, January 18, 2017

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Consumer Price Index, Milwaukee-Racine — Second Half 2016

Local prices up 0.7 percent over the year

The Consumer Price Index for All Urban Consumers (CPI-U) in the Milwaukee-Racine area rose 0.7 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 1.4 percent higher compared to its second half 2015 level as price increases were noted in the categories for shelter and medical care. Food prices rose 0.6 percent over the year while the index for energy decreased 5.4 percent. (See chart 1.)

Food

The 0.6-percent rise in food prices over the year was attributed to a 6.4-percent increase in costs for food eaten away from home (restaurant, cafeteria, and vending purchases). On the other hand, food at home (grocery) prices were down 2.9 percent. In the previous annual period (second half 2014 to second half 2015), food prices in the Milwaukee area rose 0.8 percent.

Energy

Gasoline prices were down 11.8 percent from their second half 2015 levels and electricity prices were 0.6 percent lower, contributing to the 5.4-percent drop in energy prices over the year. Costs for utility (piped) gas service, on the other hand, rose 5.5 percent compared to their second half 2015 levels. In the previous annual period, energy costs had fallen 14.5 percent.

All items less food and energy

The 1.4-percent over-the-year increase in the all items less food and energy index was primarily due to a 2.8 percent increase in shelter costs. Medical care (2.7 percent), apparel (2.8 percent), and household furnishings and operations (2.1 percent) also contributed to the rise in the aggregate all items less food and energy index.

The first half 2017 Consumer Price Index for Milwaukee-Racine 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 Milwaukee-Racine, Wis., consolidated area covered in this release is comprised of Milwaukee, Ozaukee, Racine, Washington, and Waukesha Counties in Wisconsin.

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
Milwaukee-Racine, WI (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

226.984 227.147 228.624 0.7 0.7

All items (1967=100)

701.066 701.568 706.129 - -

Food and beverages

248.702 249.801 250.323 0.7 0.2

Food

252.964 253.851 254.429 0.6 0.2

Food at home

248.995 243.964 241.687 -2.9 -0.9

Food away from home

259.541 270.570 276.054 6.4 2.0

Alcoholic beverages

208.358 211.580 211.536 1.5 0.0

Housing

213.262 215.621 218.560 2.5 1.4

Shelter

260.716 263.454 267.956 2.8 1.7

Rent of primary residence(1)

241.257 243.815 248.355 2.9 1.9

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

278.025 280.692 285.330 2.6 1.7

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

278.025 280.692 285.330 2.6 1.7

Fuels and utilities

208.419 208.691 210.836 1.2 1.0

Household energy

169.387 169.269 171.326 1.1 1.2

Energy services(1)

174.593 174.696 176.627 1.2 1.1

Electricity(1)

216.195 213.153 214.931 -0.6 0.8

Utility (piped) gas service(1)

105.286 109.147 111.114 5.5 1.8

Household furnishings and operations

95.644 98.328 97.677 2.1 -0.7

Apparel

139.638 143.679 143.494 2.8 -0.1

Transportation

187.955 178.677 179.366 -4.6 0.4

Private transportation

180.048 170.303 171.670 -4.7 0.8

Motor fuel

225.426 186.601 198.775 -11.8 6.5

Gasoline (all types)

222.241 184.274 196.116 -11.8 6.4

Gasoline, unleaded regular(3)

219.801 180.211 193.095 -12.2 7.1

Gasoline, unleaded midgrade(3)(4)

244.856 206.462 217.447 -11.2 5.3

Gasoline, unleaded premium(3)

217.561 189.200 198.170 -8.9 4.7

Medical care

488.733 492.159 501.719 2.7 1.9

Recreation(5)

118.172 119.058 118.098 -0.1 -0.8

Education and communication(5)

152.723 152.158 149.991 -1.8 -1.4

Other goods and services

389.660 397.126 396.424 1.7 -0.2
 

Commodity and service group

 
 

All Items

226.984 227.147 228.624 0.7 0.7

Commodities

177.558 175.980 176.466 -0.6 0.3

Commodities less food & beverages

145.558 142.995 143.453 -1.4 0.3

Nondurables less food & beverages

198.575 192.621 197.039 -0.8 2.3

Durables

97.689 98.030 95.803 -1.9 -2.3

Services

274.366 276.332 278.752 1.6 0.9
 

Special aggregate indexes

 
 

All items less medical care

215.476 215.492 216.610 0.5 0.5

All items less shelter

216.676 215.906 216.266 -0.2 0.2

Commodities less food

147.960 145.594 146.038 -1.3 0.3

Nondurables

224.515 221.692 224.313 -0.1 1.2

Nondurables less food

199.070 193.787 197.877 -0.6 2.1

Services less rent of shelter(2)

302.343 303.456 303.596 0.4 0.0

Services less medical care services

257.310 259.263 261.594 1.7 0.9

Energy

195.796 178.639 185.158 -5.4 3.6

All items less energy

232.358 234.259 235.264 1.3 0.4

All items less food and energy

229.819 231.893 232.968 1.4 0.5

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