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18-1443-CHI
Thursday, September 13, 2018

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Consumer Price Index, Detroit-Warren-Dearborn — August 2018

Local prices up 2.8 percent over the year

The Consumer Price Index for All Urban Consumers (CPI-U) in the Detroit-Warren-Dearborn area fell 0.6 percent from June to August, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the food index rose 1.1 percent and the energy index fell 2.4 percent over the bi-monthly period. The index for all items less food and energy decreased 0.7 percent from June to August. Among the indexes within the all items less food and energy category, prices were lower for recreation and public transportation, but higher for new and used motor vehicles. (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 2.8 percent. (See chart 1 and table A.) The food index and the energy index rose 1.6 percent and 9.8 percent, respectively, from August 2017 to August 2018. The index for all items less food and energy rose 2.4 percent over the year. (See table 1.)

Food

Food prices increased 1.1 percent from June to August. Of the two components within the food index, prices for food at home (groceries) rose 0.8 percent and prices for food away from home (restaurant, cafeteria, and vending purchases) increased 1.5 percent over the bi-monthly period.

Over the year, food prices in the Detroit area were up 1.6 percent. Prices for groceries increased 0.3 percent, while food away from home prices rose 3.2 percent from August 2017.

Energy

The energy index for Detroit was 2.4 percent lower from June to August, largely due to gasoline prices falling 2.0 percent and electricity costs decreasing 3.2 percent. Utility (piped) gas service costs were down 2.7 percent during the same period.

From August 2017 to August 2018, overall energy prices rose 9.8 percent. Gasoline prices increased 20.6 percent over the year. Utility (piped) gas service costs declined 4.9 percent, while electricity costs decreased 0.8 percent.

All items less food and energy

The index for all items less food and energy decreased 0.7 percent from June to August. Among the index’s components, prices were lower for recreation (-11.4 percent) and public transportation, but higher for new and used motor vehicles (1.4 percent).

Over the year, the index for all items less food and energy rose 2.4 percent. Increases in the indexes for shelter (2.4 percent) and other goods and services (7.1 percent) were contributing factors.

Table A. Detroit-Warren-Dearborn, MI, CPI-U 2-month and 12-month percent changes, all items index, not seasonally adjusted
Month 2014 2015 2016 2017 2018
2-month 12-month 2-month 12-month 2-month 12-month 2-month 12-month 2-month 12-month

February

1.1 0.7 -0.7 -1.8 0.3 0.9 0.9 3.0 0.3 2.1

April

1.3 2.0 1.2 -1.9 1.4 1.1 0.7 2.3 0.9 2.3

June

0.5 1.3 0.0 -2.4 1.2 2.3 0.0 1.1 1.3 3.6

August

-1.0 1.0 0.6 -0.9 -0.1 1.7 0.1 1.3 -0.6 2.8

October

-0.1 1.0 0.1 -0.7 0.2 1.7 0.9 2.0

December

-1.8 -0.1 -1.2 -0.1 -0.6 2.4 0.1 2.7

The October 2018 Consumer Price Index for Detroit is scheduled to be released on Wednesday, November 14, 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 93 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 29 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 75 urban areas across the country from about 5,000 housing units and approximately 22,000 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-Warren-Dearborn, Mich., Core Based Statistical 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.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods
Detroit-Warren-Dearborn, MI (1982-84=100 unless otherwise noted)
Item and Group

Indexes Percent change from-
Jun.
2018
Jul.
2018
Aug.
2018
Aug.
2017
Jun.
2018
Jul.
2018

Expenditure category

All items

234.695 - 233.221 2.8 -0.6 -

All items (1967=100)

697.611 - 693.231 - - -

Food and beverages

222.778 - 225.129 1.6 1.1 -

Food

221.892 - 224.313 1.6 1.1 -

Food at home

207.199 207.399 208.819 0.3 0.8 0.7

Cereals and bakery products

256.361 - 260.496 - 1.6 -

Meats, poultry, fish and eggs

218.686 - 218.977 - 0.1 -

Dairy and related products

162.078 - 161.223 - -0.5 -

Fruits and vegetables

224.326 - 225.974 - 0.7 -

Nonalcoholic beverages and beverage materials(1)

193.822 - 193.401 - -0.2 -

Other food at home

188.392 - 192.049 - 1.9 -

Food away from home

245.336 - 248.914 3.2 1.5 -

Alcoholic beverages

228.705 - 230.047 2.3 0.6 -

Housing

218.445 - 217.991 1.8 -0.2 -

Shelter

250.865 252.192 251.353 2.4 0.2 -0.3

Rent of primary residence(2)

255.940 256.277 258.565 4.0 1.0 0.9

Owners' equiv. rent of residences(2)(3)

249.178 249.165 249.827 2.4 0.3 0.3

Owners' equiv. rent of primary residence(2)(3)

249.178 249.165 249.827 2.4 0.3 0.3

Fuels and utilities

250.273 - 245.496 -0.2 -1.9 -

Household energy

193.151 191.641 187.707 -0.8 -2.8 -2.1

Energy services(2)

194.646 193.058 188.887 -2.6 -3.0 -2.2

Electricity(2)

232.895 232.873 225.557 -0.8 -3.2 -3.1

Utility (piped) gas service(2)

142.918 140.001 139.107 -4.9 -2.7 -0.6

Household furnishings and operations

117.332 - 115.940 -0.2 -1.2 -

Apparel

118.921 - 118.482 0.7 -0.4 -

Transportation

249.934 - 249.743 8.9 -0.1 -

Private transportation

251.522 - 252.453 9.9 0.4 -

New and used motor vehicles(4)

108.481 - 109.978 - 1.4 -

New vehicles(1)

201.368 - 202.396 - 0.5 -

Used cars and trucks(1)

287.582 - 291.911 - 1.5 -

Motor fuel

270.629 266.663 265.193 20.6 -2.0 -0.6

Gasoline (all types)

269.285 265.307 263.838 20.6 -2.0 -0.6

Gasoline, unleaded regular(5)

271.298 267.084 265.715 21.0 -2.1 -0.5

Gasoline, unleaded midgrade(5)(6)

315.223 311.329 309.218 19.2 -1.9 -0.7

Gasoline, unleaded premium(5)

276.095 274.246 271.529 16.2 -1.7 -1.0

Motor vehicle insurance(1)

1,808.449 - 1,833.492 - 1.4 -

Medical care

441.854 - 441.866 2.5 0.0 -

Recreation(4)

127.064 - 112.561 -5.1 -11.4 -

Education and communication(4)

143.634 - 144.646 3.0 0.7 -

Tuition, other school fees, and childcare(1)

1,281.090 - 1,290.200 - 0.7 -

Other goods and services

432.010 - 435.020 7.1 0.7 -

Commodity and service group

All items

234.695 - 233.221 2.8 -0.6 -

Commodities

179.463 - 179.174 3.7 -0.2 -

Commodities less food and beverages

156.474 - 155.019 5.1 -0.9 -

Nondurables less food and beverages

196.307 - 194.594 8.0 -0.9 -

Durables

112.020 - 110.866 0.3 -1.0 -

Services

291.177 - 288.573 2.4 -0.9 -

Special aggregate indexes

All items less medical care

226.365 - 224.805 2.9 -0.7 -

All items less shelter

231.555 - 229.268 3.0 -1.0 -

Commodities less food

159.180 - 157.803 5.0 -0.9 -

Nondurables

210.039 - 210.220 4.7 0.1 -

Nondurables less food

198.582 - 197.038 7.6 -0.8 -

Services less rent of shelter(3)

349.180 - 342.780 2.4 -1.8 -

Services less medical care services

281.965 - 279.132 2.5 -1.0 -

Energy

232.715 230.019 227.194 9.8 -2.4 -1.2

All items less energy

237.860 - 236.751 2.3 -0.5 -

All items less food and energy

241.359 - 239.609 2.4 -0.7 -

Footnotes
(1) Index on a December 1977=100 base.
(2) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator.
(3) Index on a December 1982=100 base.
(4) Indexes on a December 1997=100 base.
(5) Special index based on a substantially smaller sample.
(6) Index on a December 1993=100 base.

- Data not available.
Note: Index applies to a month as a whole, not to any specific date. Data not seasonally adjusted.

 

Last Modified Date: Thursday, September 13, 2018