The Consumer Price Index for All Urban Consumers (CPI-U) in the Cincinnati-Hamilton area increased 1.1 percent from the second half of 2016 to the second half of 2017, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that energy prices were 11.7 percent higher compared to the second half of 2016, and food prices were up 2.0 percent. The index for all items less food and energy was unchanged over the year. (See chart 1.)

Food

Food prices over the year increased 2.0 percent as the index for food at home (grocery) rose 2.3 percent and the index for food eaten away from home (restaurant, cafeteria, and vending purchases) was up 1.5 percent. In the previous annual period (second half 2015 to second half 2016), food prices were down 0.6 percent in the Cincinnati area.

Energy

Costs for electricity rose 20.3 percent, and gasoline prices were 7.3 percent higher from their second half 2016 levels, contributing to the 11.7-percent increase in energy prices over the year. Utility (piped) gas service costs, on the other hand, were down 0.2 percent compared to their second half 2016 levels. In the previous annual period, energy costs had risen 0.9 percent.

All items less food and energy

The all items less food and energy index was unchanged over the year. Shelter costs were up 0.6 percent, while medical care prices were down 1.5 percent.

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 2017 from-
	2nd half 2016	1st half 2017	2nd half 2017	2nd half 2016	1st half 2017
Expenditure category
All items	227.927	229.335	230.427	1.1	0.5
All items (1967=100)	705.255	709.613	712.993	-	-
Food and beverages	219.781	222.185	223.662	1.8	0.7
Food	216.196	218.607	220.452	2.0	0.8
Food at home	206.539	208.620	211.336	2.3	1.3
Food away from home	234.263	237.227	237.715	1.5	0.2
Alcoholic beverages	249.569	251.743	248.809	-0.3	-1.2
Housing	212.323	214.645	216.093	1.8	0.7
Shelter	243.841	244.930	245.219	0.6	0.1
Rent of primary residence(1)	249.311	253.270	258.350	3.6	2.0
Owners' equiv. rent of residences(1)(2)	245.297	245.519	245.728	0.2	0.1
Owners' equiv. rent of primary residence(1)(2)	245.297	245.519	245.728	0.2	0.1
Fuels and utilities	231.635	246.023	260.508	12.5	5.9
Household energy	192.717	207.745	223.315	15.9	7.5
Energy services(1)	199.184	215.235	231.531	16.2	7.6
Electricity(1)	205.313	225.254	246.982	20.3	9.6
Utility (piped) gas service(1)	172.189	174.500	171.791	-0.2	-1.6
Household furnishings and operations	115.082	115.173	113.668	-1.2	-1.3
Apparel	151.042	152.430	149.102	-1.3	-2.2
Transportation	198.321	199.292	200.059	0.9	0.4
Private transportation	195.197	196.112	197.335	1.1	0.6
Motor fuel	215.459	221.277	231.292	7.3	4.5
Gasoline (all types)	214.872	220.619	230.562	7.3	4.5
Gasoline, unleaded regular(3)	218.077	224.035	234.438	7.5	4.6
Gasoline, unleaded midgrade(3)(4)	219.556	224.537	234.456	6.8	4.4
Gasoline, unleaded premium(3)	210.113	214.841	220.872	5.1	2.8
Medical care	508.081	504.187	500.561	-1.5	-0.7
Recreation(5)	132.442	132.641	134.785	1.8	1.6
Education and communication(5)	129.374	128.533	129.878	0.4	1.0
Other goods and services	498.211	501.138	505.236	1.4	0.8
Commodity and service group
All items	227.927	229.335	230.427	1.1	0.5
Commodities	176.784	176.992	176.737	0.0	-0.1
Commodities less food & beverages	154.320	153.602	152.625	-1.1	-0.6
Nondurables less food & beverages	194.868	195.779	196.893	1.0	0.6
Durables	116.238	114.286	111.730	-3.9	-2.2
Services	282.204	284.904	287.448	1.9	0.9
Special aggregate indexes
All items less medical care	215.034	216.685	217.993	1.4	0.6
All items less shelter	223.792	225.341	226.762	1.3	0.6
Commodities less food	158.032	157.404	156.361	-1.1	-0.7
Nondurables	208.471	210.116	211.416	1.4	0.6
Nondurables less food	199.400	200.402	201.241	0.9	0.4
Services less rent of shelter(2)	334.462	339.296	344.806	3.1	1.6
Services less medical care services	264.203	267.182	270.033	2.2	1.1
Energy	205.585	216.459	229.597	11.7	6.1
All items less energy	233.397	233.996	234.046	0.3	0.0
All items less food and energy	238.029	238.283	237.990	0.0	-0.1
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.