The Consumer Price Index for All Urban Consumers (CPI-U) for the South rose 0.4 percent in August, the U.S. Bureau of Labor Statistics reported today. The index for all items less food and energy rose 0.6 percent from July to August, while the energy index declined 0.5 percent. The food index was unchanged over the month. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes reflect the impact of seasonal influences.)

The all items CPI-U for the South rose 1.1 percent for the 12 months ending August 2020. The index for all items less food and energy increased 1.6 percent over the past year, while the food index advanced 3.9 percent. In contrast, the energy index declined 9.4 percent over the past 12 months. (See chart 1 and table 1.)

Food

The food index was unchanged in August. The food away from home index edged up 0.2 percent over the month, while the food at home index inched down 0.1 percent.

The food index advanced 3.9 percent for the 12 months ending in August, reflecting increases in the food at home (4.9 percent) and food away from home (2.6 percent) indexes.

Energy

The energy index declined 0.5 percent in August, reflecting decreases in the gasoline (-0.7 percent), utility (piped) gas service (-2.3 percent), and electricity (-0.1 percent) indexes.

The energy index declined 9.4 percent for the 12 months ending in August, led by a 17.4-percent drop in the gasoline index. The electricity and the utility (piped) gas service indexes also declined over the past year, down 1.2 percent and 2.4 percent, respectively.

All items less food and energy

The index for all items less food and energy rose 0.6 percent in August. Several indexes increased over the month, most notably used cars and trucks (5.9 percent) and shelter (0.3 percent).

The index for all items less food and energy rose 1.6 percent for the 12 months ending in August. The shelter index increased 2.4 percent over the 12-month span, and the medical care index rose 3.6 percent—reflecting a 4.9 percent increase for medical care services. Apparel was among the indexes to decline over the year, down 7.4 percent.

Geographic divisions

Additional price indexes are now available for the three divisions of the South. The all items CPI-U for the South Atlantic division rose 0.5 percent in August. The all items index for the East South Central and West South Central divisions also increased in August, up 0.3 percent and 0.2 percent, respectively.

The all items index advanced 1.5 percent in the South Atlantic division for the 12 months ending in August. Over the past year, the all items index rose 1.0 percent in the East South Central division and 0.4 percent in the West South Central division.

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

Month	2016		2017		2018		2019		2020
	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month
January	0.0	1.2	0.5	2.6	0.5	1.8	0.2	1.2	0.3	2.3
February	0.1	0.7	0.2	2.8	0.6	2.1	0.5	1.1	0.2	1.9
March	0.6	0.7	0.0	2.2	0.2	2.3	0.7	1.6	-0.1	1.1
April	0.4	0.9	0.2	2.0	0.4	2.4	0.5	1.8	-0.8	-0.2
May	0.4	0.9	0.0	1.7	0.3	2.7	-0.1	1.4	-0.2	-0.4
June	0.4	0.8	0.2	1.5	0.2	2.7	-0.1	1.1	0.6	0.3
July	-0.2	0.7	-0.2	1.6	0.0	2.9	0.3	1.4	0.6	0.6
August	0.1	1.0	0.4	1.9	-0.1	2.4	-0.1	1.4	0.4	1.1
September	0.2	1.4	0.7	2.4	0.0	1.7	0.0	1.3
October	0.1	1.5	-0.2	2.0	0.2	2.1	0.2	1.3
November	-0.1	1.6	-0.1	2.1	-0.3	1.9	0.0	1.6
December	0.1	2.0	-0.1	1.8	-0.5	1.5	0.0	2.1

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

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 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 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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