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17-14-CHI
Wednesday, January 18, 2017

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Consumer Price Index, Minneapolis-St. Paul — Second Half 2016

Local prices up 1.6 percent over the year

The Consumer Price Index for All Urban Consumers (CPI-U) in the Minneapolis-St. Paul area increased 1.6 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 2.2 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 0.2 percent over the year while the index for energy decreased 1.5 percent. (See chart 1.)

Food

The 0.2-percent increase in food prices over the year was attributed to a 4.2-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 3.0 percent. In the previous annual period (second half 2014 to second half 2015), food prices in the Minneapolis-St. Paul area rose 1.5 percent.

Energy

Gasoline prices were down 9.4 percent compared to their second half 2015 levels, contributing to the 1.5-percent decrease in energy prices over the year. On the other hand, costs for electricity rose 8.0 percent and utility (piped) gas service costs were up 5.2 percent. Energy costs declined 16.3 percent in the prior annual period.

All items less food and energy

The 2.2-percent over-the-year increase in the all items less food and energy index was primarily due to a 3.7- percent gain in shelter costs. Medical care (6.0 percent) and recreation (2.5 percent) also contributed to the rise in the all items less food and energy index.

The first half 2017 Consumer Price Index for Minneapolis-St. Paul 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 Minneapolis-St. Paul, Minn.-Wis. metropolitan area covered in this release is comprised of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright Counties and Pierce and St. Croix 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
Minneapolis-St. Paul, MN-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

231.760 232.777 235.514 1.6 1.2

All items (1967=100)

728.311 731.506 740.108 - -

Food and beverages

272.282 271.883 273.212 0.3 0.5

Food

261.487 260.785 262.052 0.2 0.5

Food at home

252.407 247.678 244.783 -3.0 -1.2

Food away from home

275.526 280.251 287.067 4.2 2.4

Alcoholic beverages

368.029 372.357 374.311 1.7 0.5

Housing

209.754 213.268 216.294 3.1 1.4

Shelter

242.483 248.079 251.421 3.7 1.3

Rent of primary residence(1)

245.933 250.312 254.497 3.5 1.7

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

252.307 258.224 262.803 4.2 1.8

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

252.307 258.224 262.803 4.2 1.8

Fuels and utilities

198.092 200.078 210.385 6.2 5.2

Household energy

177.839 178.871 190.354 7.0 6.4

Energy services(1)

181.648 182.471 194.405 7.0 6.5

Electricity(1)

243.625 251.636 263.062 8.0 4.5

Utility (piped) gas service(1)

128.061 121.781 134.733 5.2 10.6

Household furnishings and operations

121.526 119.599 118.250 -2.7 -1.1

Apparel

137.800 127.054 131.122 -4.8 3.2

Transportation

198.554 191.730 193.446 -2.6 0.9

Private transportation

181.630 175.422 177.603 -2.2 1.2

Motor fuel

194.019 163.836 176.042 -9.3 7.5

Gasoline (all types)

194.835 164.347 176.537 -9.4 7.4

Gasoline, unleaded regular(3)

195.629 164.382 176.841 -9.6 7.6

Gasoline, unleaded midgrade(3)(4)

199.182 171.425 182.633 -8.3 6.5

Gasoline, unleaded premium(3)

237.912 204.187 216.419 -9.0 6.0

Medical care

495.139 510.252 525.091 6.0 2.9

Recreation(5)

122.565 124.993 125.663 2.5 0.5

Education and communication(5)

138.004 138.192 137.794 -0.2 -0.3

Other goods and services

363.260 367.175 370.664 2.0 1.0
 

Commodity and service group

 
 

All Items

231.760 232.777 235.514 1.6 1.2

Commodities

185.166 180.860 181.617 -1.9 0.4

Commodities less food & beverages

145.813 140.436 140.967 -3.3 0.4

Nondurables less food & beverages

188.881 176.940 180.112 -4.6 1.8

Durables

106.987 106.328 105.408 -1.5 -0.9

Services

272.786 278.725 283.298 3.9 1.6
 

Special aggregate indexes

 
 

All items less medical care

219.912 220.301 222.521 1.2 1.0

All items less shelter

228.203 227.236 229.728 0.7 1.1

Commodities less food

153.839 148.547 149.118 -3.1 0.4

Nondurables

228.443 221.450 223.808 -2.0 1.1

Nondurables less food

201.109 189.720 192.895 -4.1 1.7

Services less rent of shelter(2)

321.785 328.220 334.480 3.9 1.9

Services less medical care services

253.713 258.423 261.871 3.2 1.3

Energy

188.764 173.911 185.921 -1.5 6.9

All items less energy

239.567 242.159 244.138 1.9 0.8

All items less food and energy

236.431 239.508 241.592 2.2 0.9

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 December 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