The Consumer Price Index for All Urban Consumers (CPI-U) for Miami increased 0.4 percent over the two months, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Janet S. Rankin noted that the all items less food and energy index increased 1.0 percent, reflecting higher prices for shelter, apparel, and other goods and services. The energy index declined 3.5 percent during the two-month pricing period, while the food index was unchanged. (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 rose 2.2 percent with annual increases registered in several categories, notably shelter and food. The index for all items less food and energy rose 2.5 percent over the year. (See table 1.)

Food

Food prices were unchanged during the September-October pricing period. A 0.4-percent decrease in prices for food at home was largely offset by a 0.7-percent increase in prices for food away from home.

From October 2013 to October 2014, the food index increased 2.5 percent, as prices rose for both food at home (2.3 percent) and food away from home (3.1 percent).

Energy

The energy index decreased 3.5 percent during the two-month pricing period, led by a 5.9-percent decline in motor fuel prices. Prices also decreased for electricity (-0.2 percent) and utility (piped) gas service (-0.8 percent).

Over the year, the energy index declined 1.0 percent as prices decreased for motor fuel (-5.3 percent). Prices increased over the year for both electricity (5.2 percent), and utility (piped) gas service (4.6 percent).

All items less food and energy

The index for all items less food and energy rose 1.0 percent over the two months. Among the components of the index, increases were recorded for shelter (0.6 percent), apparel (6.7 percent), and other goods and services (4.9 percent). Price advances were noted for women’s outerwear and girl’s apparel.

Over the year, the index for all items less food and energy advanced 2.5 percent, reflecting higher prices for several indexes, most notably shelter (3.3 percent).

The December 2014 Consumer Price Index for the Miami-Fort Lauderdale 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 Miami-Fort Lauderdale, Fl. consolidated area covered in this release is comprised of Broward and Date Counties in Florida.

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.