Prices in the Detroit-Warren-Dearborn area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), advanced 1.7 percent for the two months ending in June 2021, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Jason Palmer noted that food prices increased 0.7 percent, and the energy index rose 7.3 percent from April to June. The all items less food and energy index increased 1.4 percent over the past two months due to a rise in the indexes for used cars and trucks and shelter. (Data in this report are not seasonally adjusted. Accordingly, bi-monthly changes may reflect seasonal influences.)

Over the last 12 months, the CPI-U advanced 5.4 percent. (See chart 1 and table A.)  The index for all items less food and energy rose 3.8 percent over the year. Energy prices jumped 24.9 percent, largely the result of an increase in the price of gasoline. Food prices advanced 5.9 percent. (See table 1.)

  

Food

Food prices increased 0.7 percent for the two months ending in June.  Prices for food at home (groceries) advanced 1.3 percent, and prices for food away from home (restaurant, cafeteria, and vending purchases) were unchanged for the same period.

Over the year, food prices advanced 5.9 percent. Prices for food at home advanced 2.0 percent since a year ago, and prices for food away from home jumped 11.0 percent.

Energy

The energy index rose 7.3 percent for the two months ending in June. The increase was mainly due to higher prices for gasoline (11.6 percent). Prices for electricity advanced 4.9 percent, and prices for utility (piped) gas service advanced 0.9 percent for the same period.

Energy prices jumped 24.9 percent over the year, largely due to higher prices for gasoline (49.0 percent). Prices paid for utility (piped) gas service jumped 12.9 percent, and prices for electricity advanced 4.4 percent during the past year.

All items less food and energy

The index for all items less food and energy advanced 1.4 percent in the latest two-month period. Higher prices for used cars and trucks (17.7 percent) and shelter (1.1 percent) were partially offset by lower prices for apparel (-1.7 percent) and recreation (-0.9 percent).

Over the year, the index for all items less food and energy rose 3.8 percent. Components contributing to the increase included used cars and trucks (45.8 percent) and shelter (5.0 percent). Partly offsetting the increases was a decline in the index for apparel (-3.2 percent).

The August 2021 Consumer Price Index for the Detroit-Warren-Dearborn area is scheduled to be released on Tuesday, September 14, 2021.

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 U.S. population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 29 percent of the total U.S. 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 6,000 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; for most of the CPI-U the reference base is 1982-84 equals 100. An increase of 7 percent from the reference base, for example, is shown as 107.000.  Alternatively, that relationship can also be expressed as the price of a base period market basket of goods and services rising from $100 to $107. For further details see the CPI home page on the Internet at www.bls.gov/cpi and the CPI section of the BLS Handbook of Methods available on the internet at www.bls.gov/opub/hom/cpi/.

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, MI, Core Based Statistical Area covered in this release is comprised of Lapeer, Livingston, Macomb, Oakland, St. Clair, and Wayne Counties in Michigan.

Information in this release will be made available to individuals with sensory impairments upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.