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18-18-CHI
Friday, January 12, 2018

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Consumer Price Index, Detroit-Ann Arbor-Flint — December 2017

Local prices rose 2.7 percent over the year

The Consumer Price Index for All Urban Consumers (CPI-U) in the Detroit-Ann Arbor-Flint area rose 0.1 percent from October to December, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that over the bi-monthly period the food index and energy index rose 0.4 percent and 2.0 percent, respectively, while the index for all items less food and energy decreased 0.2 percent. Among the indexes within the all items less food and energy category, prices were lower for apparel, shelter, and recreation. (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 2.7 percent. (See chart 1 and table A.) The food index and the energy index rose 2.0 percent and 3.6 percent, respectively, from December 2016 to December 2017. The index for all items less food and energy rose 2.7 percent over the year. (See table 1.)

Food

Food prices rose 0.4 percent from October to December. Of the two components within the food index, prices for food at home (groceries) increased 0.2 percent and prices for food away from home (restaurant, cafeteria, and vending purchases) were 0.8 percent higher.

Over the year, food prices in the Detroit area were up 2.0 percent. Prices for groceries and food away from home rose 0.8 percent and 3.8 percent, respectively, from December 2016.

Energy

The energy index for Detroit was 2.0 percent higher from October to December, primarily due to gasoline prices rising 2.8 percent. Electricity prices increased 1.1 percent, while utility (piped) gas service costs declined 0.3 percent.

From December 2016 to December 2017, overall energy prices rose 3.6 percent. Gasoline prices increased 11.7 percent over the year. In contrast, the electricity and utility (piped) gas service indexes declined 6.1 percent and 1.5 percent, respectively.

All items less food and energy

The index for all items less food and energy decreased 0.2 percent from October to December. Among the index’s components, prices were lower for apparel (-6.5 percent), shelter (-0.4 percent), and recreation (-1.8 percent). Prices were higher for new and used motor vehicles and medical care (0.6 percent).

Over the year, the index for all items less food and energy rose 2.7 percent. A 5.4-percent increase in the index for shelter was a major contributing factor.

Table A. Detroit CPI-U 2-month and 12-month percent changes, all items index, not seasonally adjusted
Month 2013 2014 2015 2016 2017
2-month 12-month 2-month 12-month 2-month 12-month 2-month 12-month 2-month 12-month

February

1.1 1.9 1.1 0.7 -0.7 -1.8 0.3 0.9 0.9 3.0

April

0.0 1.3 1.3 2.0 1.2 -1.9 1.4 1.1 0.7 2.3

June

1.2 3.3 0.5 1.3 0.0 -2.4 1.2 2.3 0.0 1.1

August

-0.7 1.3 -1.0 1.0 0.6 -0.9 -0.1 1.7 0.1 1.3

October

-0.1 0.7 -0.1 1.0 0.1 -0.7 0.2 1.7 0.9 2.0

December

-0.7 0.8 -1.8 -0.1 -1.2 -0.1 -0.6 2.4 0.1 2.7

The February 2018 Consumer Price Index for Detroit is scheduled to be released on Tuesday, March 13, 2018.

Consumer Price Index Geographic Revision for 2018

In January 2018, BLS will introduce a new geographic area sample for the Consumer Price Index (CPI). As part of the new sample, the index for this area will be renamed. The first indexes using the new structure will be published in February 2018. Additional information on the geographic revision is available at: www.bls.gov/cpi/georevision2018.htm.


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 Detroit-Ann Arbor-Flint, Mich. consolidated 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-Ann Arbor-Flint, MI (1982-84=100 unless otherwise noted)
Item and Group

 
Indexes Percent change from-
Oct.
2017
Nov.
2017
Dec.
2017
Dec.
2016
Oct.
2017
Nov.
2017

Expenditure category

 
 

All items

228.779 - 228.951 2.7 0.1 -

All items (1967=100)

680.027 - 680.539 - - -

Food and beverages

222.979 - 223.744 1.8 0.3 -

Food

222.295 - 223.257 2.0 0.4 -

Food at home

209.347 209.151 209.786 0.8 0.2 0.3

Food away from home

243.150 - 244.998 3.8 0.8 -

Alcoholic beverages

226.364 - 224.223 -0.2 -0.9 -

Housing

215.951 - 215.691 4.0 -0.1 -

Shelter

248.717 246.820 247.615 5.4 -0.4 0.3

Rent of primary residence(1)

249.677 250.763 251.310 3.7 0.7 0.2

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

246.137 246.379 246.752 5.7 0.2 0.2

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

246.137 246.379 246.752 5.7 0.2 0.2

Fuels and utilities

239.729 - 243.359 -2.0 1.5 -

Household energy

184.428 186.425 186.690 -3.0 1.2 0.1

Energy services(1)

187.028 188.148 188.053 -4.4 0.5 -0.1

Electricity(1)

214.499 217.390 216.782 -6.1 1.1 -0.3

Utility (piped) gas service(1)

146.128 145.282 145.742 -1.5 -0.3 0.3

Household furnishings and operations

118.067 - 118.215 2.2 0.1 -

Apparel

123.547 - 115.576 0.9 -6.5 -

Transportation

230.754 - 235.390 4.1 2.0 -

Private transportation

231.161 - 235.887 4.4 2.0 -

Motor fuel

221.508 245.116 227.824 11.8 2.9 -7.1

Gasoline (all types)

220.143 243.737 226.396 11.7 2.8 -7.1

Gasoline, unleaded regular(3)

220.814 245.212 227.160 12.1 2.9 -7.4

Gasoline, unleaded midgrade(3)(4)

262.705 286.470 269.610 10.7 2.6 -5.9

Gasoline, unleaded premium(3)

235.662 253.721 241.674 9.9 2.6 -4.7

Medical care

435.799 - 438.617 3.3 0.6 -

Recreation(5)

118.416 - 116.340 -1.9 -1.8 -

Education and communication(5)

142.939 - 142.692 -1.2 -0.2 -

Other goods and services

408.009 - 403.214 0.3 -1.2 -
 

Commodity and service group

 
 

All items

228.779 - 228.951 2.7 0.1 -

Commodities

175.029 - 175.568 2.7 0.3 -

Commodities less food & beverages

150.075 - 150.503 3.3 0.3 -

Nondurables less food & beverages

184.535 - 183.848 4.9 -0.4 -

Durables

111.415 - 112.759 1.1 1.2 -

Services

283.759 - 283.592 2.7 -0.1 -
 

Special aggregate indexes

 
 

All items less medical care

220.399 - 220.448 2.6 0.0 -

All items less shelter

224.054 - 224.723 1.6 0.3 -

Commodities less food

152.872 - 153.232 3.1 0.2 -

Nondurables

203.784 - 203.791 3.3 0.0 -

Nondurables less food

187.316 - 186.547 4.6 -0.4 -

Services less rent of shelter(2)

334.920 - 336.038 0.4 0.3 -

Services less medical care services

273.956 - 273.796 2.6 -0.1 -

Energy

204.842 216.426 208.943 3.6 2.0 -3.5

All items less energy

233.990 - 233.754 2.6 -0.1 -

All items less food and energy

236.707 - 236.252 2.7 -0.2 -

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

 

Last Modified Date: Friday, January 12, 2018