The Consumer Price Index for All Urban Consumers (CPI-U) in the Boston-Cambridge-Newton area increased 0.2 percent in July, the U.S. Bureau of Labor Statistics reported today. Acting Regional Commissioner Mark J. Maggi noted that this was mainly attributable to higher all items less food and energy prices, up 0.2 percent, and to a lesser extent, higher energy and food prices up 0.5 percent and 0.2 percent, respectively. (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 0.8 percent. The increase was due to higher food prices, up 7.6 percent and higher costs within all item less food and energy, up 0.8 percent. Lower energy costs, down 13.8 percent, partially offset the increase.  (See chart 1.)

Food

Food prices increased 0.2 percent since May, mainly due to higher food at home or grocery store prices, up 0.5 percent. Higher food at home prices were mainly driven by higher prices for meats, poultry, fish, and eggs, up 4.3 percent and nonalcoholic beverages and beverage materials, up 4.7 percent.  Food away from home, or restaurant prices, partially offset the increase and inched down since May (-0.1 percent).

Food prices increased 7.6 percent over the year, mainly due to higher grocery store prices, up 9.2 percent and to a lesser extent, higher restaurant prices, up 5.2 percent. Local food prices haven’t risen by as much since recording an 8.4 percent annual increase in March 1989. Higher grocery store prices were due to increased prices recorded across all of the published subcategories.

Energy

The energy index increased 0.5 percent over the two months, mainly due to higher gasoline prices, up 5.2 percent. This overall increase was partially offset by lower electricity and utility piped gas prices down, 3.2 percent and 4.8 percent, respectively.       

Energy prices decreased 13.8 percent from a year ago, mainly due to lower gasoline prices, down 22.6 percent.

All items less food and energy

The index for all items less food and energy increased 0.2 percent mainly due to higher shelter costs, up 0.3 percent. Within shelter, higher costs for owners’ equivalent rent of residences, up 0.2 percent, led the increase. Also contributing to the overall increase in prices were higher prices in education and communication, up 0.4 percent. Lower recreation prices, down 5.2 percent and to a lesser extent, household furnishings and operations, down 0.8 percent, partially offset the increase.

Over the year, the index for all items less food and energy rose 0.8 percent, with higher shelter costs being the main driver of the increase, up 2.1 percent. Within shelter, higher costs for owners’ equivalent rent of residences, up 3.8 percent, and to a lesser extent, rent of primary residence, up 3.0 percent, led the increase. Also contributing to the overall increase in prices within all items less food and energy were higher costs within education and communication, up 2.9 percent, and medical care costs, up 1.5 percent. Lower prices in recreation, down 6.1 percent and to a lesser extent, lower apparel prices, down, 3.8 percent partially offset the overall increase. 

CPI-W

In July, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 281.598. The CPI-W increased 0.3 percent over two months and increased 0.9 percent over the year.

The September 2020 Consumer Price Index for Boston-Cambridge-Newton is scheduled to be released on Tuesday, October 13, 2020, 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.

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.