The Consumer Price Index for All Urban Consumers (CPI-U) for the South inched up 0.1 percent in December, the U.S. Bureau of Labor Statistics reported today. The energy index rose 1.4 percent over the month. The food index inched down 0.1 percent, while the all items less food and energy index was unchanged in December. (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 all items CPI-U advanced 2.0 percent. The all items less food and energy index increased 2.1 percent over the year reflecting price increases for shelter and medical care. (See chart 1.)

Food

The food index inched down 0.1 percent in December, led by a decline in the food at home index (-0.4 percent). The food away from home index edged up 0.3 percent over the month.

The food index declined 0.3 percent over the year. The food at home index fell 1.9 percent since December 2015, while the food away from home index was up 1.8 percent.

Energy

The energy index increased 1.4 percent in December, led by price increases for motor fuel (2.9 percent) and electricity (0.1 percent). Prices for utility (piped) gas service declined over-the-month, down 0.7 percent.

From December 2015—December 2016, energy prices advanced 5.2 percent, reflecting price increases for motor fuel (11.9 percent), and utility (piped) gas service (8.0 percent). Since December 2015, prices for electricity declined 1.1 percent.

All items less food and energy

The all items less food and energy index was unchanged in December. Price increases for shelter (0.2 percent) and other goods and services (0.3 percent), were largely offset by price declines for apparel (-2.9 percent) and education and communication (-0.4 percent).

Since December 2015, the all items less food and energy index advanced 2.1 percent—led by increases in shelter (2.9 percent) and medical care (4.6 percent).

Table A. South region CPI-U 1-month and 12-month percent changes, all items index, not seasonally adjusted

Month	2012		2013		2014		2015		2016
	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month
January	0.5	3.2	0.4	1.6	0.3	1.7	-0.7	-0.4	0.0	1.2
February	0.6	3.3	0.9	1.8	0.4	1.2	0.5	-0.3	0.1	0.7
March	0.7	2.8	0.3	1.5	0.6	1.5	0.6	-0.3	0.6	0.7
April	0.4	2.5	-0.2	0.9	0.5	2.3	0.3	-0.6	0.4	0.9
May	-0.4	1.6	0.0	1.3	0.2	2.4	0.4	-0.4	0.4	0.9
June	-0.2	1.7	0.4	1.9	0.2	2.3	0.5	-0.1	0.4	0.8
July	-0.2	1.4	0.2	2.2	-0.1	2.0	-0.1	-0.1	-0.2	0.7
August	0.6	1.6	0.1	1.7	-0.2	1.7	-0.2	-0.2	0.1	1.0
September	0.5	2.1	0.0	1.3	0.1	1.7	-0.2	-0.4	0.2	1.4
October	-0.2	2.1	-0.2	1.3	-0.3	1.6	0.0	-0.1	0.1	1.5
November	-0.5	1.6	-0.3	1.5	-0.6	1.3	-0.2	0.3	-0.1	1.6
December	-0.1	1.7	0.1	1.8	-0.6	0.6	-0.4	0.5	0.1	2.0

The Consumer Price Index for January 2017 is scheduled to be released on Wednesday, February 15, 2017.

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 6,000 housing units and approximately 24,000 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 https://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 South region is comprised of Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia.

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