Prices in the New York-Newark-Jersey City area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), were flat in July, following a 0.3-percent rise in June, the U.S. Bureau of Labor Statistics reported today. Chief Regional Economist Martin Kohli explained that declining food and energy prices were offset by price increases in other items. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the impact of seasonal influences.)

Over the year, the CPI-U increased 1.7 percent. The index for all items less food and energy advanced 2.3 percent—the largest increase since February 2013. (See table A and chart 1.) Price increases for shelter drove the 12-month change in both indexes. (See table 1.)

Food

The food index decreased 0.3 percent after increasing 0.6 percent in June. A 0.7-percent drop in prices for food at home led to the downturn, with price declines in five of the six grocery groups. Canned fruits and vegetables, candy and chewing gum, and bananas were among the groceries with lower prices in July. Prices for food away from home rose 0.2 percent.

For the year ended in July 2019, the food index increased 1.1 percent. Food-away-from-home prices rose 2.4 percent, while food-at-home prices edged up 0.1 percent.

Energy

The energy index declined 0.8 percent, reversing a 4-month string of monthly increases. Prices for household energy declined 1.3 percent, with a 1.8-percent drop in electricity prices and a 1.1-percent decline in natural gas prices. Gasoline prices inched down 0.2 percent.   

From July 2018 to July 2019, the energy index declined 4.2 percent. Household energy prices dropped 5.0 percent, and gasoline prices were down 3.2 percent. Among prices for household energy items, natural gas fell 5.9 percent, and electricity declined 4.1 percent.

All items less food and energy

The index for all items less food and energy ticked up 0.1 percent. A 0.3-percent rise in owners’ equivalent rent contributed to the 0.2-percent increase in prices for shelter. Prices for new and used motor vehicles increased 1.1 percent, and medical care advanced 1.0 percent. Seasonal decreases in prices for apparel (-4.4 percent) and price declines in public transportation partially offset these increases.

Over the year, the index for all items less food and energy rose 2.3 percent. A 2.3-percent increase in shelter prices included a 3.4-percent rise in residential rent and a 1.9-percent increase in owners’ equivalent rent. Medical care prices jumped 6.2 percent—the largest increase since November 1992. Among other items with increases of at least 2.0 percent, education and communication rose 2.1 percent and included a 3.9-percent rise in prices for tuition, other school fees, and childcare; recreation rose 2.9 percent; and other goods and services rose 2.0 percent.

Table A. New York-Newark-Jersey City CPI-U 1-month and 12-month percent changes (not seasonally adjusted)

Month	2014		2015		2016		2017		2018		2019
	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month
January	0.9	1.9	0.1	-0.5	0.2	0.8	0.6	2.5	0.4	1.4	0.5	1.6
February	-0.2	1.1	0.3	0.1	0.2	0.6	0.3	2.6	0.5	1.7	0.2	1.3
March	0.4	1.3	0.2	-0.1	0.2	0.7	0.0	2.3	0.0	1.7	0.3	1.6
April	0.0	1.6	0.1	0.0	0.4	1.0	0.1	2.0	0.3	1.9	0.3	1.6
May	0.5	1.9	0.4	-0.1	0.3	0.9	0.1	1.8	0.4	2.2	0.2	1.5
June	0.0	1.7	0.2	0.1	0.2(R)	0.9(R)	0.2	1.8	0.1	2.0	0.3	1.7
July	0.1	1.6	-0.1	-0.1	-0.1	1.0	-0.2	1.6	0.0	2.2	0.0	1.7
August	-0.2	1.3	0.1	0.1	0.2	1.1	0.2	1.7	0.1	2.2
September	0.0	1.0	0.2	0.3	0.2	1.0	0.5	2.1	0.4	2.0
October	-0.2	1.3	-0.1	0.4	0.1	1.2	-0.2	1.8	-0.1	2.0
November	-0.4	0.8	-0.2	0.6	0.2	1.6	-0.1	1.6	-0.2	1.9
December	-0.5	0.3	-0.4	0.7	0.1	2.1	0.1	1.6	-0.2	1.6
Footnotes: (R) = revised.

CPI-W

In July, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 273.287, virtually unchanged over the month. The CPI-W rose 1.5 percent over the year.

The August 2019 Consumer Price Index for New York-Newark-Jersey City is scheduled to be released on Thursday, September 12, 2019, at 8:30 a.m. (ET).

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 93 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 29 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 75 urban areas across the country from about 5,000 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 (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/pdf/homch17.pdf.

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 New York-Newark-Jersey City, N.Y.-N.J.-Pa., Core Based Statistical Area includes Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, and Westchester Counties in New York; Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, and Union Counties in New Jersey; and Pike County in Pennsylvania.

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