Consumer Price Index, Boston-Cambridge-Newton — July 2021

Area prices up 1.2 percent over two months; up 4.3 percent from a year ago

Prices in the Boston area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), advanced 1.2 percent for the two months ending in July 2021, the U.S. Bureau of Labor Statistics reported today. (See table.) Regional Commissioner William J. Sibley noted that the July increase was influenced by higher prices for all items less food and energy, led by higher shelter and new and used motor vehicle prices, up 1.8 and 7.4 percent, respectively. (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 4.3 percent. This was the largest advance since September 2008. (See chart 1 and table.) The index for all items less food and energy increased 3.3 percent over the year. Higher shelter and new and used motor vehicles costs, up 3.0 and 23.4 percent, respectively, led the increase. Energy prices jumped 24.8 percent, largely the result of an increase in the price of gasoline. Food prices increased 2.1 percent. (See table.)

(See table.)

Chart 1. Over-the-year percent change in CPI-U, Boston-Cambridge-Newton, July 2018 - July 2021

Food

Food prices rose 1.1 percent for the two months ending in July. (See table.) Prices for food at home crept up 0.1 percent, and prices for food away from home increased 2.5 percent for the same period.

Over the year, food prices increased 2.1 percent. Prices for food at home decreased 2.7 percent since a year ago, and prices for food away from home increased 9.4 percent.

Energy

The energy index rose 1.5 percent for the two months ending in July. The decrease was mainly due to higher prices for gasoline (4.5 percent). Prices for natural gas service were unchanged, and prices for electricity decreased 1.1 percent for the same period.

Energy prices jumped 24.8 percent over the year, largely due to higher prices for gasoline (43.8 percent). Prices paid for natural gas service jumped 19.3 percent, and prices for electricity advanced 5.7 percent during the past year.

All items less food and energy

The index for all items less food and energy increased 1.2 percent in the latest two-month period. Higher prices for shelter (1.8 percent), new and used motor vehicles (7.4 percent), and recreation (1.1 percent) were partially offset by lower prices for apparel (-4.1 percent) and medical care (-0.5 percent). Higher shelter costs were attributable to increased owners’ equivalent rent of residences costs, up 0.7 percent. Within new and used motor vehicles, higher costs for used cars and trucks, up 12.3 percent, drove the increase.

Over the year, the index for all items less food and energy increased 3.3 percent. Components contributing to the increase included shelter (3.0 percent) and new and used motor vehicles (23.4 percent). Within shelter, higher prices within owners’ equivalent rent of residences led the increase (2.2 percent). Within new and used motor vehicles, higher prices for used cars and trucks led the advance (43.7 percent). This was the largest yearly advance since the series began in November 2017. Partly offsetting the increases were price decreases in apparel (-0.4 percent) and medical care (-0.1 percent).

CPI-W

In July, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 294.075. The CPI-W increased 1.2 percent over two months and increased 4.4 percent over the year.

The September 2021 Consumer Price Index for Boston-Cambridge-Newton area is scheduled to be released on Wednesday, October 13, 2021, at 8:30 a.m. (ET).

Coronavirus (COVID-19) Pandemic Impact on July 2021 Consumer Price Index Data

Data collection by personal visit for the Consumer Price Index (CPI) program has been suspended since March 16, 2020. When possible, data normally collected by personal visit were collected either online or by phone. Additionally, data collection in July was affected by the temporary closing or limited operations of certain types of establishments. These factors resulted in an increase in the number of prices considered temporarily unavailable and imputed.

While the CPI program attempted to collect as much data as possible, many indexes are based on smaller amounts of collected prices than usual, and a small number of indexes that are normally published were not published this month. Additional information is available atwww.bls.gov/covid19/effects-of-covid-19-pandemic-on-consumer-price-index.htm

Technical Note

The Consumer Price Index (CPI) is a measures 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 Boston-Cambridge-Newton, Mass.-N.H. Core Based Statistical Area covered in this release is comprised of Essex, Middlesex, Norfolk, Plymouth, Suffolk Counties in Massachusetts; Rockingham, Strafford Counties in New Hampshire.

Information from this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; Federal Relay Service: 1-800-877-8339.

Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods, Boston-Cambridge-Newton, Ma.-N.H. (1982-84=100 unless otherwise noted) (not seasonally adjusted)
Expenditure category	Indexes				Percent change from
Expenditure category	Historical data	May 2021	Jun. 2021	Jul. 2021	Jul. 2020	May 2021	Jun. 2021
All items		291.667		295.211	4.3	1.2
All items (1967 = 100)		847.738		858.038

Food and beverages		289.240		292.389	2.3	1.1
Food		291.594		294.819	2.1	1.1
Food at home		265.725	265.015	266.042	-2.7	0.1	0.4
Cereal and bakery products		319.379		318.899	-1.8	-0.2
Meats, poultry, fish, and eggs		283.348		281.663	-5.3	-0.6
Dairy and related products		290.198		284.953	-3.0	-1.8
Fruits and vegetables		347.441		353.643	0.7	1.8
Nonalcoholic beverages and beverage materials(1)		168.617		163.862	-4.2	-2.8
Other food at home		202.702		206.251	-2.9	1.8
Food away from home		337.021		345.397	9.4	2.5
Alcoholic beverages		267.683		270.066	5.1	0.9

Housing		304.058		308.394	3.8	1.4
Shelter		362.801	368.092	369.208	3.0	1.8	0.3
Rent of primary residence(2)		375.599	376.991	376.720	1.5	0.3	-0.1
Owners' equivalent rent of residences(2)(3)(4)		390.503	390.685	393.353	2.2	0.7	0.7
Owners' equivalent rent of primary residence(2)(3)(4)		390.503	390.685	393.353	2.2	0.7	0.7
Fuels and utilities		294.889		293.118	11.9	-0.6
Household energy		244.715	245.187	243.038	12.9	-0.7	-0.9
Energy services(2)		257.078	258.005	255.028	9.5	-0.8	-1.2
Electricity(2)		306.803	308.385	303.295	5.7	-1.1	-1.7
Utility (piped) gas service(2)		170.924	170.927	170.928	19.3	0.0	0.0
Household furnishings and operations		131.507		132.104	4.4	0.5

Apparel		128.455		123.164	-0.4	-4.1

Transportation		206.781		213.981	17.6	3.5
Private transportation		211.085		221.406	20.1	4.9
New and used motor vehicles(5)		120.889		129.892	23.4	7.4
New Vehicles(1)		211.375		221.544	3.2	4.8
Used cars and trucks(1)		412.651		463.292	43.7	12.3
Motor fuel		251.448	256.887	262.656	43.5	4.5	2.2
Gasoline (all types)		248.840	254.172	259.918	43.8	4.5	2.3
Gasoline, unleaded regular(6)		241.364	246.649	252.324	45.7	4.5	2.3
Gasoline, unleaded midgrade(6)(7)		267.241	272.908	278.812	35.4	4.3	2.2
Gasoline, unleaded premium(6)		261.125	265.915	271.253	32.5	3.9	2.0
Motor vehicle insurance(1)

Medical care		698.880		695.077	-0.1	-0.5

Recreation(5)		116.623		117.886	1.0	1.1

Education and communication(5)		173.280		174.151	1.5	0.5
Tuition, other fees, and child care(1)		1,424.214		1,431.936	2.3	0.5

Other goods and services		522.728		529.524	2.5	1.3

Commodity and service group
Commodities		202.069		205.805	7.8	1.8
Commodities less food and beverages		157.457		161.264	12.2	2.4
Nondurables less food and beverages		198.430		199.413	10.7	0.5
Durables		116.681		122.270	14.2	4.8
Services		372.461		375.860	2.6	0.9

Special aggregate indexes
All items less shelter		265.827		268.168	5.1	0.9
All items less medical care		276.152		279.928	4.6	1.4
Commodities less food		161.844		165.616	11.8	2.3
Nondurables		242.577		244.607	5.7	0.8
Nondurables less food		202.531		203.614	10.1	0.5
Services less rent of shelter(3)		400.335		399.686	2.2	-0.2
Services less medical care services		348.836		352.709	3.0	1.1
Energy		245.456	248.027	249.249	24.8	1.5	0.5
All items less energy		300.114		303.697	3.2	1.2
All items less food and energy		302.595		306.249	3.3	1.2
Footnotes (1) Indexes on a January 1978=100 base. (2) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator. (3) Indexes on a November 1982=100 base. (4) This index series underwent a change in composition in January 2010. The expenditure class now includes weight from secondary residences, and has been re-titled "Owners' equivalent rent of residences." The item stratum "Owners' equivalent rent of primary residence" excludes secondary residences. (5) Indexes on a December 1997=100 base. (6) Special index based on a substantially smaller sample. (7) Indexes on a December 1993=100 base.
Note: Index applies to a month as a whole, not to any specific date.

Last Modified Date: Thursday, August 12, 2021

Northeast Information Office

Consumer Price Index, Boston-Cambridge-Newton — July 2021