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18-1148-CHI
Thursday, July 12, 2018

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

Local prices up 3.6 percent over the year

The Consumer Price Index for All Urban Consumers (CPI-U) in the Detroit-Warren-Dearborn area rose 1.3 percent from April to June, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the food index fell 1.0 percent and the energy index was up 6.3 percent over the bi-monthly period. The index for all items less food and energy increased 1.1 percent from April to June. Among the indexes within the all items less food and energy category, prices were higher for recreation and 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 3.6 percent. (See chart 1 and table A.) The food index and the energy index rose 0.6 percent and 13.1 percent, respectively, from June 2017 to June 2018. The index for all items less food and energy rose 3.2 percent over the year. (See table 1.)

Food

Food prices decreased 1.0 percent from April to June. Of the two components within the food index, prices for food at home (groceries) fell 1.6 percent and prices for food away from home (restaurant, cafeteria, and vending purchases) were down 0.3 percent over the bi-monthly period.

Over the year, food prices in the Detroit area were up 0.6 percent. Prices for groceries fell 1.3 percent, while food away from home prices rose 3.2 percent from June 2017.

Energy

The energy index for Detroit was 6.3 percent higher from April to June, primarily due to gasoline prices rising 10.9 percent. Electricity costs increased 1.7 percent and utility (piped) gas service costs rose 0.9 percent during the same period.

From June 2017 to June 2018, overall energy prices rose 13.1 percent. Gasoline prices increased 25.2 percent over the year. Electricity costs increased 2.4 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 1.1 percent from April to June. Among the index’s components, prices were higher for recreation (7.0 percent) and new and used motor vehicles (4.6 percent).

Over the year, the index for all items less food and energy rose 3.2 percent. Increases in the indexes for shelter (2.5 percent) and recreation (8.6 percent) were major 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

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 August 2018 Consumer Price Index for Detroit is scheduled to be released on Thursday, September 13, 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-
Apr.
2018
May
2018
Jun.
2018
Jun.
2017
Apr.
2018
May
2018

Expenditure category

All items

231.784 - 234.695 3.6 1.3 -

All items (1967=100)

688.960 - 697.611 - - -

Food and beverages

224.812 - 222.778 0.7 -0.9 -

Food

224.142 - 221.892 0.6 -1.0 -

Food at home

210.586 206.780 207.199 -1.3 -1.6 0.2

Cereals and bakery products

261.580 - 256.361 - -2.0 -

Meats, poultry, fish and eggs

222.045 - 218.686 - -1.5 -

Dairy and related products

162.841 - 162.078 - -0.5 -

Fruits and vegetables

229.170 - 224.326 - -2.1 -

Nonalcoholic beverages and beverage materials(1)

199.548 - 193.822 - -2.9 -

Other food at home

190.414 - 188.392 - -1.1 -

Food away from home

246.014 - 245.336 3.2 -0.3 -

Alcoholic beverages

227.754 - 228.705 3.0 0.4 -

Housing

218.171 - 218.445 2.0 0.1 -

Shelter

250.310 250.419 250.865 2.5 0.2 0.2

Rent of primary residence(2)

253.694 255.102 255.940 3.3 0.9 0.3

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

247.866 247.951 249.178 3.0 0.5 0.5

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

247.866 247.951 249.178 3.0 0.5 0.5

Fuels and utilities

247.947 - 250.273 1.8 0.9 -

Household energy

190.881 187.902 193.151 1.6 1.2 2.8

Energy services(2)

192.010 189.166 194.646 0.1 1.4 2.9

Electricity(2)

229.089 223.503 232.895 2.4 1.7 4.2

Utility (piped) gas service(2)

141.590 141.537 142.918 -2.9 0.9 1.0

Household furnishings and operations

119.116 - 117.332 -0.9 -1.5 -

Apparel

119.099 - 118.921 1.8 -0.1 -

Transportation

238.713 - 249.934 8.3 4.7 -

Private transportation

239.358 - 251.522 9.0 5.1 -

New and used motor vehicles(4)

103.741 - 108.481 - 4.6 -

New vehicles(1)

201.352 - 201.368 - 0.0 -

Used cars and trucks(1)

289.433 - 287.582 - -0.6 -

Motor fuel

244.095 266.722 270.629 25.2 10.9 1.5

Gasoline (all types)

242.761 265.513 269.285 25.2 10.9 1.4

Gasoline, unleaded regular(5)

244.291 267.503 271.298 25.8 11.1 1.4

Gasoline, unleaded midgrade(5)(6)

282.856 308.781 315.223 23.2 11.4 2.1

Gasoline, unleaded premium(5)

253.259 273.260 276.095 19.6 9.0 1.0

Motor vehicle insurance(1)

1,807.449 - 1,808.449 - 0.1 -

Medical care

441.830 - 441.854 1.7 0.0 -

Recreation(4)

118.701 - 127.064 8.6 7.0 -

Education and communication(4)

141.613 - 143.634 3.2 1.4 -

Tuition, other school fees, and childcare(1)

1,252.806 - 1,281.090 - 2.3 -

Other goods and services

430.484 - 432.010 9.2 0.4 -

Commodity and service group

All items

231.784 - 234.695 3.6 1.3 -

Commodities

178.125 - 179.463 3.7 0.8 -

Commodities less food and beverages

153.667 - 156.474 5.6 1.8 -

Nondurables less food and beverages

190.665 - 196.307 9.7 3.0 -

Durables

112.152 - 112.020 -0.6 -0.1 -

Services

286.745 - 291.177 3.6 1.5 -

Special aggregate indexes

All items less medical care

223.286 - 226.365 3.8 1.4 -

All items less shelter

227.652 - 231.555 4.1 1.7 -

Commodities less food

156.418 - 159.180 5.5 1.8 -

Nondurables

207.958 - 210.039 5.0 1.0 -

Nondurables less food

193.193 - 198.582 9.2 2.8 -

Services less rent of shelter(3)

339.820 - 349.180 4.6 2.8 -

Services less medical care services

277.110 - 281.965 3.9 1.8 -

Energy

218.918 228.024 232.715 13.1 6.3 2.1

All items less energy

235.945 - 237.860 2.8 0.8 -

All items less food and energy

238.685 - 241.359 3.2 1.1 -

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, July 12, 2018