Wednesday, December 17, 2014
The Consumer Price Index for All Urban Consumers (CPI-U) in the Boston-Brockton-Nashua area was up 0.2 percent in November, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Deborah A. Brown noted that the two-month increase was mainly due to higher prices for electricity and utility (piped) gas. To a lesser extent, price advances within the all items less food and energy category also contributed. (Data in this report are not seasonally adjusted. Accordingly, bimonthly changes may reflect the impact of seasonal influences.)
Over the last 12 months the Boston CPI-U rose 1.6 percent. The increase was largely attributable to higher shelter prices, up 3.1 percent. (See chart 1.)
Food prices edged up 0.2 percent since September due to higher grocery store prices, also known as food at home, up 0.4 percent. Partially offsetting this rise, food away from home, or restaurant prices, were down 0.2 percent.
From November 2013 to November 2014 the index for food rose 1.8 percent mainly due to higher grocery store prices (+2.3 percent) and, to a lesser extent, higher restaurant prices (+0.9 percent).
The energy index rose slightly, up 0.8 percent over the two months, mainly due to both electricity and utility (piped) gas price increases. Utility (piped) gas prices were up due to suppliers switching to winter rate schedules. These increases were largely offset by lower gasoline prices, down 13.4 percent. Area motorists paid $3.011 per gallon of gasoline in November.
Energy prices edged down 0.2 percent from a year ago, attributable to lower gasoline prices, down 10.4 percent. Partially offsetting this decline were 21.4-percent and 8.6-percent advances in local electricity and utility (piped) gas prices, respectively. The November increase in local electricity prices was the largest since a 23.4-percent increase was recorded in October of 2006.
All items less food and energy
The index for all items less food and energy edged up 0.1 percent in November, due to higher prices for medical care and other goods and services. The increase in medical care was mainly attributable to higher prices within eye glasses and eye care. Lower prices for education and communication as well as apparel mostly offset these increases.
Over the year, the index for all items less food and energy rose 1.8 percent, with higher shelter costs, rising 3.1 percent from November 2013, being the main cause of this increase. This marked the 41st consecutive annual increase in the local shelter index.
In November, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 255.903. The CPI-W was unchanged over two months and rose 1.0 percent over the year.
The January 2015 Consumer Price Index for Boston-Brockton-Nashua is scheduled to be released on Thursday, February 26, 2015, at 8:30 a.m. (ET).
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 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 4,000 housing units and approximately 26,000 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 change 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 withweights 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 Boston-Brockton-Nashua, Mass.-N.H.-Maine-Conn. consolidated area covered in this release is comprised of Essex, Middlesex, Norfolk, Plymouth and Suffolk Counties and parts of Bristol, Hampden, and Worcester Counties in Massachusetts; parts of Hillsborough, Merrimack, Rockingham, and Strafford Counties in New Hampshire; part of York County in Maine; and part of Windham County in Connecticut.
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.
|Expenditure category||Indexes||Percent change from|
All items (1967 = 100)
Food and beverages
Food at home
Food away from home
Rent of primary residence (1)
Fuels and utilities
Energy services (1)
Utility (piped) gas service (1)
Household furnishings and operations
Gasoline (all types)
Gasoline, unleaded regular (4)
Gasoline, unleaded premium (4)
Education and communication (6)
Other goods and services
Commodity and service group
Commodities less food and beverages
Nondurables less food and beverages
Special aggregate indexes
All items less shelter
All items less medical care
Commodities less food
Nondurables less food
Services less rent of shelter (2)
Services less medical care services
All items less energy
All items less food and energy
Note: Index applies to a month as a whole, not to any specific date.
Last Modified Date: Wednesday, December 17, 2014