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Friday, January 12, 2018

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Consumer Price Index, Midwest Region – December 2017

Prices in the Midwest down 0.2 percent in December and 1.7 percent higher over the year

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

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.

Energy

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.

All items less food and energy

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.

CPI-W

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.

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 0.3 1.5

October

-0.5 0.8 -0.5 1.6 -0.1 -0.3 -0.1 1.0 -0.2 1.5

November

-0.2 1.0 -0.6 1.2 -0.5 -0.2 -0.3 1.2 0.2 1.9

December

-0.2 1.0 -0.7 0.7 -0.6 0.0 0.1 1.8 -0.2 1.7

The January 2018 Consumer Price Index for the Midwest region is scheduled to be released on Wednesday, February 14, 2018.

Consumer Price Index Geographic Revision for 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/georevision2018.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.


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/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.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods

Midwest (1982-84=100 unless otherwise noted)
Item and Group

 
Indexes
 
Percent change from-
Oct.
2017
Nov.
2017
Dec.
2017
Dec.
2016
Oct.
2017
Nov.
2017

Expenditure category

 
 

All Items

230.660 231.084 230.548 1.7 0.0 -0.2

All items (December 1977=100)

375.297 375.987 375.115      

Food and beverages

243.137 242.643 242.295 1.2 -0.3 -0.1

Food

242.612 242.006 241.621 1.1 -0.4 -0.2

Food at home

227.606 226.388 225.452 0.6 -0.9 -0.4

Food away from home

267.849 268.290 268.849 1.9 0.4 0.2

Alcoholic beverages

248.135 249.271 249.453 1.7 0.5 0.1

Housing

222.389 222.701 222.996 2.4 0.3 0.1

Shelter

264.438 264.847 265.446 2.7 0.4 0.2

Rent of primary residence(1)

264.525 265.492 266.506 3.2 0.7 0.4

Owners' equiv. rent of residences(1)(2)

268.747 269.506 270.592 2.9 0.7 0.4

Owners' equiv. rent of primary residence(1)(2)

268.703 269.462 270.552 2.9 0.7 0.4

Fuels and utilities

218.676 220.900 220.094 2.7 0.6 -0.4

Household energy

178.315 180.422 179.467 2.5 0.6 -0.5

Energy services(1)

185.151 187.097 185.913 2.0 0.4 -0.6

Electricity(1)

198.999 202.150 198.794 1.4 -0.1 -1.7

Utility (piped) gas service(1)

151.019 150.883 153.307 3.4 1.5 1.6

Household furnishings and operations

113.181 112.010 112.074 -0.9 -1.0 0.1

Apparel

122.206 118.508 114.054 0.5 -6.7 -3.8

Transportation

195.305 198.648 196.875 2.5 0.8 -0.9

Private transportation

190.238 193.768 192.101 2.8 1.0 -0.9

New and used motor vehicles(3)

94.597 94.619 95.696 -1.0 1.2 1.1

New vehicles

135.425 135.939 137.575 -1.0 1.6 1.2

New cars and trucks(3)(4)

95.671 95.971 97.136 -1.1 1.5 1.2

New cars(4)

131.640 132.373 133.620 -0.8 1.5 0.9

Used cars and trucks

135.278 134.252 135.560 -1.9 0.2 1.0

Motor fuel

218.769 235.477 220.298 10.2 0.7 -6.4

Gasoline (all types)

217.436 234.172 218.851 10.1 0.7 -6.5

Gasoline, unleaded regular(4)

211.413 228.189 212.844 10.3 0.7 -6.7

Gasoline, Unleaded midgrade(4)(5)

252.232 267.318 251.906 8.4 -0.1 -5.8

Gasoline, unleaded premium(4)

241.312 256.103 242.985 8.6 0.7 -5.1

Medical Care

478.733 479.998 480.251 0.6 0.3 0.1

Medical care commodities

386.422 388.850 391.232 2.2 1.2 0.6

Medical care services

509.709 510.553 510.045 0.1 0.1 -0.1

Professional services

415.674 416.591 416.243 0.8 0.1 -0.1

Recreation(3)

122.531 121.690 121.510 3.0 -0.8 -0.1

Education and communication(3)

137.489 137.609 137.966 -1.8 0.3 0.3

Other goods and services

418.438 418.869 417.834 1.3 -0.1 -0.2
 

Commodity and Service Group

 
 

All Items

230.660 231.084 230.548 1.7 0.0 -0.2

Commodities

177.462 177.879 176.384 1.0 -0.6 -0.8

Commodities less food & beverages

145.731 146.499 144.591 0.9 -0.8 -1.3

Nondurables less food & beverages

193.071 195.192 189.811 2.9 -1.7 -2.8

Nondurables less food, beverages, and apparel

239.590 245.449 239.444 3.7 -0.1 -2.4

Durables

100.682 100.394 101.194 -1.8 0.5 0.8

Services

285.509 285.940 286.383 2.1 0.3 0.2

Rent of shelter(2)

271.784 272.242 272.847 2.8 0.4 0.2

Transportation services

305.915 305.863 307.742 2.3 0.6 0.6

Other services

338.254 337.991 338.525 1.3 0.1 0.2
 

Special aggregate indexes:

 
 

All items less medical care

218.917 219.301 218.728 1.8 -0.1 -0.3

All items less food

228.598 229.187 228.627 1.7 0.0 -0.2

All items less shelter

220.774 221.207 220.262 1.2 -0.2 -0.4

Commodities less food

148.926 149.707 147.844 0.9 -0.7 -1.2

Nondurables

217.776 218.661 215.654 2.0 -1.0 -1.4

Nondurables less food

195.972 198.037 192.968 2.8 -1.5 -2.6

Nondurables less food and apparel

238.941 244.354 238.924 3.5 0.0 -2.2

Services less rent of shelter(2)

317.109 317.537 317.828 1.4 0.2 0.1

Services less medical care services

268.789 269.190 269.701 2.3 0.3 0.2

Energy

196.531 204.945 197.850 6.0 0.7 -3.5

All items less energy

236.893 236.533 236.638 1.3 -0.1 0.0

All items less food and energy

236.574 236.259 236.452 1.3 -0.1 0.1

Commodities less food and energy commodities

143.634 142.537 142.151 -0.7 -1.0 -0.3

Energy commodities

218.390 234.755 220.419 10.3 0.9 -6.1

Services less energy services

298.292 298.567 299.184 2.1 0.3 0.2

Footnotes
(1) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator.
(2) Index is on a December 1982=100 base.
(3) Indexes on a December 1997=100 base.
(4) Special index based on a substantially smaller sample.
(5) Indexes on a December 1993=100 base.
 

Regions defined as the four Census regions. Midwest includes Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
NOTE: Index applies to a month as a whole, not to any specific date. Data not seasonally adjusted.
 

 

Last Modified Date: Friday, January 12, 2018