The Consumer Price Index for All Urban Consumers (CPI-U) in the Midwest was up 0.3 percent in August after recording no change for three consecutive months, the U.S. Bureau of Labor Statistics reported today. Higher costs for gasoline, food, and apparel had the largest upward impact on the index, while lower prices for new and used motor vehicles and airline fares had the largest offsetting downward movements. The all items less food and energy index was virtually unchanged, up a slight 0.1 percent, in August. Energy costs increased 1.9 percent and food prices rose 0.5 percent. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the impact of seasonal influences.)

The CPI-U for the Midwest rose 1.5 percent from August 2016 to August 2017. (See chart 1 and table A.) The energy index, which includes motor fuel and household fuels, rose 5.2 percent and food prices increased 0.7 percent. Excluding food and energy, the CPI-U advanced 1.3 percent over the year. (See table 1.)

Food

Food prices in the Midwest rose 0.5 percent in August after recording no change in July. Higher costs for food away from home led the increase with a gain of 0.8 percent, the largest one-month advance since February 2014. Prices for food at home were up 0.3 percent over the month.

From August 2016 to August 2017, the index for food was 0.7 percent higher, mostly attributable to an increase of 1.5 percent in costs for food away from home. Prices for food at home were little changed, up 0.1 percent over the year.

Energy

The energy index advanced 1.9 percent in August following a decline of 0.5 percent in July. A 4.4-percent increase in gasoline prices was largely responsible for the rise. Electricity costs were little changed over the month, up a slight 0.1 percent. Moderating the overall increase, utility (piped) gas service costs declined 0.7 percent in August.

Energy costs were 5.2 percent higher from August 2016 to August 2017 due to increases among all three major subcategories: gasoline (7.3 percent), utility (piped) gas service (5.2 percent), and electricity (2.6 percent).

All items less food and energy

The index for all items less food and energy for the Midwest was nearly unchanged, up 0.1 percent, in August following little movement in June (-0.1 percent) and July (0.1 percent). Increases in the indexes for apparel (1.6 percent) and owners’ equivalent rent of residences (0.2 percent) had the largest upward impact on the August index. Costs for new and used motor vehicles, airline fares, and lodging away from home were down over the month.

The index for all items less food and energy was up 1.3 percent from August 2016 to August 2017. Higher costs for shelter (2.5 percent), recreation (3.6 percent) and medical care (2.0 percent) led the increase. Among the indexes that registered offsetting movements were education and communication (-2.9 percent) and new and used motor vehicles (-2.4 percent).

The Midwest Consumer Price Index for All Urban Consumers (CPI-U) stood at 230.443 in August 2017. A typical market basket of goods and services that cost $100.00 in the 1982-84 base period cost $230.44 in August 2017.

CPI-W

In August, the Midwest Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 224.366. The CPI-W increased 0.3 percent in August and 1.3 percent over the year.

Table A. Midwest region CPI-U 1-month and 12-month percent changes, all items index, not seasonally adjusted

Month	2013		2014		2015		2016		2017
	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month
January	0.1	1.3	0.5	1.4	-0.6	-0.3	0.3	0.8	0.7	2.2
February	1.1	2.2	0.6	0.9	0.3	-0.5	0.0	0.4	0.2	2.4
March	0.2	1.4	0.9	1.5	0.6	-0.9	0.6	0.5	0.1	1.9
April	-0.1	1.2	0.3	1.9	0.1	-1.1	0.4	0.8	0.4	1.8
May	0.5	1.8	0.2	1.6	0.4	-0.8	0.4	0.8	0.0	1.4
June	0.3	2.2	0.5	1.7	0.5	-0.7	0.6	0.8	0.0	0.9
July	-0.4	1.8	-0.3	1.8	0.0	-0.5	-0.5	0.4	0.0	1.3
August	0.1	1.2	-0.2	1.6	0.0	-0.3	0.1	0.6	0.3	1.5
September	0.1	1.0	0.1	1.6	-0.3	-0.8	0.2	1.1
October	-0.5	0.8	-0.5	1.6	-0.1	-0.3	-0.1	1.0
November	-0.2	1.0	-0.6	1.2	-0.5	-0.2	-0.3	1.2
December	-0.2	1.0	-0.7	0.7	-0.6	0.0	0.1	1.8

The September 2017 Consumer Price Index for the Midwest region is scheduled to be released on Friday, October 13, 2017.

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 approximately 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/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 areas; they only measure the average change in prices for each area since the base period.

The Midwest region is comprised of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.

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