The Consumer Price Index for All Urban Consumers (CPI-U) in the Boston-Cambridge-Newton area was unchanged (0.0 percent) in May, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Deborah A. Brown noted that this was attributable to higher prices within all items less food and energy which was mostly offset by lower energy prices and to a lesser extent lower food prices. (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 3.2 percent. The increase was largely attributable to higher prices within all items less food and energy up 2.5 percent and to a lesser extent higher energy prices paid by area consumers, up 13.8 percent(See chart 1.).

Food

Food prices edged down 0.1 percent since March mainly due to lower food at home prices, down 0.4 percent which was partially offset by higher prices in food away from home, up 0.3 percent. Lower food at home prices were mainly driven by lower prices for fruits and vegetables; and cereals and bakery products.

Food prices increased 1.7 percent over the year, mainly due to higher food away from home prices, up 2.6 percent, and to a lesser extent, food at home prices, up 1.2 percent.

Energy

The energy index decreased 2.8 percent over the two months, mainly driven by lower utility piped gas prices down 33.6 percent, which was mainly offset by higher gasoline prices, up 12.4 percent. Lower electricity prices down 3.9 percent also contributed to the decrease.

Energy prices were up 13.8 percent from a year ago, largely attributable to gasoline prices, up 23.5 percent. Higher prices for electricity also contributed to the overall increase, up 6.3 percent.

All items less food and energy

The index for all items less food and energy increased from March (0.3 percent) mainly due to higher shelter costs, up 0.8 percent. Within shelter, higher prices in owners’ equivalent rent of residences, up 0.7 percent and rent of primary residence, up 1.0 percent drove the increase. Lower prices for new vehicles and recreation, down 3.4 percent and 1.2 percent respectively, partially offset the increase.

Over the year, the index for all items less food and energy rose 2.5 percent, with higher shelter costs being the main driver of the increase, up 4.6 percent. Within shelter, higher costs for owners’ equivalent rent of residences, up 4.4 percent and rent of primary residence, up 5.6 percent led the increase. To a lesser extent, higher prices for education and communication, up 4.2 percent, also contributed to the increase.

CPI-W

In May, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 273.591. The CPI-W was unchanged over two months and increased 3.4 percent over the year.

The July 2018 Consumer Price Index for Boston-Cambridge-Newton is scheduled to be released on Friday, August 10, 2018, at 8:30 a.m. (ET).

Technical Note

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.

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