The Consumer Price Index for All Urban Consumers (CPI-U) for Atlanta declined 1.1 percent over the two months, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Janet S. Rankin noted that energy prices decreased 10.9 percent over the two-month pricing period. The all items less food and energy group edged up 0.2 percent and the food index increased 0.7 percent. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the impact of seasonal influences.)

Over the last 12 months, the CPI-U advanced 2.2 percent, reflecting price increases for shelter, food, and medical care. The index for all items less food and energy rose 2.6 percent over the year. (See table 1.)

Food

Food prices increased 0.7 percent during the September-October pricing period. Prices increased for both food at home and food away from home, up 0.8 and 0.5 percent, respectively. In the food at home category, price increases were noted for cakes, cupcakes, and cookies.

Over the year, the food index rose 3.5 percent, reflecting price increases for both food at home (4.5 percent) and food away from home (1.8 percent).

Energy

The energy index decreased 10.9 percent over the two-month pricing period, led by a 22.1-percent seasonal decline in electricity prices. Also contributing to the decrease was a 5.7-percent decline in motor fuel prices. Utility (piped) gas service prices inched up 0.1 percent over the two months.

Over the year, the energy index decreased 1.6 percent, primarily due to a 4.8-percent decline in motor fuel prices. Prices for electricity and utility (piped) gas service increased 2.6 and 2.9 percent, respectively.

All items less food and energy

The index for all items less food and energy edged up 0.2 percent during the September-October pricing period, led by an increase in shelter prices (0.5 percent).

From October 2013 to October 2014, the index for all items less food and energy advanced 2.6 percent, reflecting higher prices for shelter (4.8 percent) and medical care (4.2 percent).

The December 2014 Consumer Price Index for the Atlanta area is scheduled to be released on January 16, 2015, 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 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 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/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 Atlanta, Ga. metropolitan area covered in this release is comprised of Barrow, Bartow, Carroll, Cherokee, Clayton, Cobb, Coweta, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Spalding, and Walton Counties in Georgia.

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.