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18-1769-CHI
Wednesday, November 14, 2018

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

Local prices rose 1.9 percent over the year

The Consumer Price Index for All Urban Consumers (CPI-U) in the Detroit-Warren-Dearborn area was unchanged from August to October, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the food index fell 1.5 percent and the energy index fell 0.5 percent over the bi-monthly period. The index for all items less food and energy increased 0.3 percent from August to October. Among the indexes within the all items less food and energy category, prices were higher for shelter, apparel, and education and communication, but lower for new and used motor vehicles, medical care, 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 1.9 percent. (See chart 1 and table A.) The energy index rose 10.3 percent and the food index fell 0.6 percent from October 2017 to October 2018. The index for all items less food and energy rose 1.5 percent over the year. (See table 1.)

Food

Food prices decreased 1.5 percent from August to October. Of the two components within the food index, prices for food at home (groceries) fell 1.4 percent and prices for food away from home (restaurant, cafeteria, and vending purchases) decreased 1.5 percent over the bi-monthly period.

Over the year, food prices in the Detroit area were down 0.6 percent. Prices for groceries decreased 1.7 percent, while food away from home prices rose 0.8 percent from October 2017.

Energy

The energy index for Detroit was 0.5 percent lower from August to October, largely due to gasoline prices falling 2.1 percent. Utility (piped) gas service costs and electricity costs were up 2.0 percent and 0.6 percent, respectively, during the same period.

From October 2017 to October 2018, overall energy prices rose 10.3 percent. Gasoline prices increased 17.3 percent over the year. Electricity costs increased 5.8 percent, while utility (piped) gas service costs declined 2.9 percent.

All items less food and energy

The index for all items less food and energy increased 0.3 percent from August to October. Among the index’s components, prices were higher for shelter (1.0 percent), apparel (7.2 percent), and education and communication (1.0 percent), but lower for new and used motor vehicles (-3.6 percent), medical care (-1.1 percent), and recreation (-1.4 percent).

Over the year, the index for all items less food and energy rose 1.5 percent. Increases in the indexes for shelter (2.0 percent) and other goods and services (7.0 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 0.0 1.9

December

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

The December 2018 Consumer Price Index for Detroit is scheduled to be released on Friday, January 11, 2019.


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-
Aug.
2018
Sep.
2018
Oct.
2018
Oct.
2017
Aug.
2018
Sep.
2018

Expenditure category

All items

233.221 - 233.134 1.9 0.0 -

All items (1967=100)

693.231 - 692.972 - - -

Food and beverages

225.129 - 222.004 -0.4 -1.4 -

Food

224.313 - 221.055 -0.6 -1.5 -

Food at home

208.819 207.513 205.875 -1.7 -1.4 -0.8

Cereals and bakery products

260.496 - 262.049 - 0.6 -

Meats, poultry, fish and eggs

218.977 - 218.774 - -0.1 -

Dairy and related products

161.223 - 159.151 - -1.3 -

Fruits and vegetables

225.974 - 222.944 - -1.3 -

Nonalcoholic beverages and beverage materials(1)

193.401 - 188.206 - -2.7 -

Other food at home

192.049 - 185.686 - -3.3 -

Food away from home

248.914 - 245.172 0.8 -1.5 -

Alcoholic beverages

230.047 - 228.815 1.1 -0.5 -

Housing

217.991 - 219.919 1.8 0.9 -

Shelter

251.353 251.545 253.815 2.0 1.0 0.9

Rent of primary residence(2)

258.565 258.617 261.310 4.7 1.1 1.0

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

249.827 249.507 251.386 2.1 0.6 0.8

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

249.827 249.507 251.386 2.1 0.6 0.8

Fuels and utilities

245.496 - 246.840 3.0 0.5 -

Household energy

187.707 188.653 190.155 3.1 1.3 0.8

Energy services(2)

188.887 189.797 191.076 2.2 1.2 0.7

Electricity(2)

225.557 225.375 226.898 5.8 0.6 0.7

Utility (piped) gas service(2)

139.107 140.960 141.905 -2.9 2.0 0.7

Household furnishings and operations

115.940 - 116.595 -1.2 0.6 -

Apparel

118.482 - 127.009 2.8 7.2 -

Transportation

249.743 - 245.077 6.2 -1.9 -

Private transportation

252.453 - 247.305 7.0 -2.0 -

New and used motor vehicles(4)

109.978 - 106.065 - -3.6 -

New vehicles(1)

202.396 - 203.703 - 0.6 -

Used cars and trucks(1)

291.911 - 281.401 - -3.6 -

Motor fuel

265.193 262.696 259.906 17.3 -2.0 -1.1

Gasoline (all types)

263.838 261.270 258.328 17.3 -2.1 -1.1

Gasoline, unleaded regular(5)

265.715 262.953 259.892 17.7 -2.2 -1.2

Gasoline, unleaded midgrade(5)(6)

309.218 306.989 304.487 15.9 -1.5 -0.8

Gasoline, unleaded premium(5)

271.529 270.700 268.437 13.9 -1.1 -0.8

Motor vehicle insurance(1)

1,833.492 - 1,837.545 - 0.2 -

Medical care

441.866 - 436.811 0.2 -1.1 -

Recreation(4)

112.561 - 110.937 -6.3 -1.4 -

Education and communication(4)

144.646 - 146.134 2.2 1.0 -

Tuition, other school fees, and childcare(1)

1,290.200 - 1,303.623 - 1.0 -

Other goods and services

435.020 - 436.627 7.0 0.4 -

Commodity and service group

All items

233.221 - 233.134 1.9 0.0 -

Commodities

179.174 - 178.770 2.1 -0.2 -

Commodities less food and beverages

155.019 - 155.831 3.8 0.5 -

Nondurables less food and beverages

194.594 - 196.465 6.5 1.0 -

Durables

110.866 - 110.588 -0.7 -0.3 -

Services

288.573 - 288.778 1.8 0.1 -

Special aggregate indexes

All items less medical care

224.805 - 224.965 2.1 0.1 -

All items less shelter

229.268 - 228.152 1.8 -0.5 -

Commodities less food

157.803 - 158.558 3.7 0.5 -

Nondurables

210.220 - 209.761 2.9 -0.2 -

Nondurables less food

197.038 - 198.738 6.1 0.9 -

Services less rent of shelter(3)

342.780 - 340.146 1.6 -0.8 -

Services less medical care services

279.132 - 279.886 2.2 0.3 -

Energy

227.194 226.523 226.014 10.3 -0.5 -0.2

All items less energy

236.751 - 236.767 1.2 0.0 -

All items less food and energy

239.609 - 240.218 1.5 0.3 -

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: Wednesday, November 14, 2018