Friday, January 12, 2018
The Consumer Price Index for All Urban Consumers (CPI-U) in the Midwest turned down 0.2 percent in December, following an increase of the same magnitude in the prior month, the U.S. Bureau of Labor Statistics reported today. Lower costs for gasoline (-6.5 percent) led the decline. Overall, energy prices were down 3.5 percent over the month. Food prices were 0.2 percent lower in December and the index for all items less food and energy was virtually unchanged (0.1 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 advanced 1.7 percent from December 2016 to December 2017. (See chart 1 and table A.) The energy index, which includes motor fuel and household fuels, rose 6.0 percent and food prices increased 1.1 percent. Excluding food and energy, the CPI-U was up 1.3 percent over the year. (See table 1.)
Food prices in the Midwest decreased for the second month in a row, down 0.2 percent in December. Costs for food at home were 0.4 percent lower over the month, but prices for food away from home were up 0.2 percent.
From December 2016 to December 2017, the index for food was 1.1 percent higher. Prices for food away from home rose 1.9 percent and prices for food at home were up 0.6 percent.
The energy index turned down 3.5 percent in December after rising 4.3 percent in the prior month. The decline was largely attributable to a 6.5-percent decrease in gasoline prices. Lower costs for electricity also contributed with a decrease of 1.7 percent. Costs for utility (piped) gas service were up 1.6 percent over the month.
Energy costs rose 6.0 percent in 2017 led by a 10.1-percent increase in gasoline prices. Higher costs for electricity (1.4 percent) and utility (piped) gas service (3.4 percent) also contributed to the increase.
The index for all items less food and energy for the Midwest was little changed in December, up a slight 0.1 percent following a slight decline of 0.1 percent in the prior month. Higher costs for new and used motor vehicles (1.1 percent) and shelter (0.2 percent) had the largest upward impact on the December index. The apparel index (-3.8 percent) registered the largest offsetting movement over the month.
The index for all items less food and energy was up 1.3 percent in 2017. Higher costs for shelter (2.7 percent) led the increase.
The Midwest Consumer Price Index for All Urban Consumers (CPI-U) stood at 230.548 in December 2017. A typical market basket of goods and services that cost $100.00 in the 1982-84 base period cost $230.55 in December 2017.
In December, the Midwest Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 224.631. The CPI-W decreased 0.3 percent in December and rose 1.7 percent over the year.
The January 2018 Consumer Price Index for the Midwest region is scheduled to be released on Wednesday, February 14, 2018.
In January 2018, BLS will introduce a new geographic area sample for the Consumer Price Index (CPI).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/additional-resources/geographic-revision-2018.htm.
Cincinnati Electricity Index
Some incorrect prices for electricity in the Cincinnati area were used in calculating index values from November 2015 through November 2017. Correct prices were used in calculating December 2017 index values. Past indexes computed using the incorrect prices are not being corrected, which may affect the interpretation of the December 2017 index value and percent changes relative to past values for the Cincinnati metropolitan area, the Midwest Census Region, and Midwest size class A cities.
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/homch17_a.htm.
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.
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.
|Item and Group||Indexes||Percent change from-|
All items (December 1977=100)
Food and beverages
Food at home
Food away from home
Rent of primary residence(1)
Fuels and utilities
Utility (piped) gas service(1)
Household furnishings and operations
New and used motor vehicles(3)
Used cars and trucks
Gasoline (all types)
Gasoline, unleaded regular(4)
Gasoline, unleaded premium(4)
Medical care commodities
Medical care services
Education and communication(3)
Other goods and services
Commodity and Service Group
Commodities less food & beverages
Nondurables less food & beverages
Nondurables less food, beverages, and apparel
Rent of shelter(2)
Special aggregate indexes:
All items less medical care
All items less food
All items less shelter
Commodities less food
Nondurables less food
Nondurables less food and apparel
Services less rent of shelter(2)
Services less medical care services
All items less energy
All items less food and energy
Commodities less food and energy commodities
Services less energy services
Regions defined as the four Census regions. Midwest includes Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
Last Modified Date: Friday, January 12, 2018