The Consumer Price Index for All Urban Consumers (CPI-U) in the Houston area rose 0.7 percent in January and February, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Stanley W. Suchman noted that the increase was the result of a 1.5-percent advance in the index for all items less food and energy, as prices fell for both energy (-7.1 percent) and food (-0.4 percent). (Data in this report are not seasonally adjusted. Accordingly, short-term changes may reflect the impact of seasonal influences.)

During the year ended in February 2016, the all items CPI-U advanced 2.0 percent. (See chart 1.) The index for all items less food and energy increased 3.9 percent over the year, the fastest annual rise since December 2013 (4.3 percent). (See table 1.)

Food

Local food prices decreased 0.4 percent in January and February, after increasing 0.5 percent in November and December. Among the two components of the index, prices for food at home (grocery stores) declined 0.9 percent, while prices for food away from home edged up 0.2 percent.

From February 2015 to February 2016, the food index rose 0.7 percent, reflecting the combined effects of a 1.4-percent price rise for food away from home and little change in grocery store prices (0.1 percent).

Energy

The energy index declined 7.1 percent in January and February, after decreasing 6.9 percent in November and December. The biggest factor in the current two-month decline was a 13.8-percent decrease in the motor fuel index, though lower natural gas costs also contributed, down 6.8 percent. Electricity prices were little changed, rising 0.3 percent during the period.

During the year ended in February 2016, the energy index fell 16.0-percent as prices decreased for all three energy components. A 23.5-percent drop in motor fuel prices was the biggest factor in the energy decline, though lower natural gas and electricity costs were also major contributors, down 11.6 and 7.7 percent, respectively.

All items less food and energy

The index for all items less food and energy advanced 1.5 percent in January and February, after decreasing 0.5 percent in November and December. Higher prices for shelter, household furnishings and operations, apparel, and airline fares were the leading factors in the current advance. Smaller contributions were made by higher prices for medical care (1.9 percent), recreation (1.7 percent), and other goods and services (0.3 percent).

From February 2015 to February 2016, the index for all items less food and energy rose 3.9 percent. The biggest factor in the annual increase was a 5.6-percent rise in shelter costs, as the indexes rose for both renters’ costs (6.2 percent) and owners’ equivalent rent (5.5 percent). Other contributors to the annual rise included higher prices for household furnishings and operations (13.8 percent), medical care (2.4 percent), and apparel (2.0 percent).

The April 2016 Consumer Price Index for All Items for Houston-Galveston-Brazoria will be released on May 17, 2016.

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 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 Houston-Galveston-Brazoria, Texas, Consolidated Metropolitan Statistical Area (CMSA) includes Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller Counties.

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.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods,
Houston-Galveston-Brazoria, TX (1982-84=100 unless otherwise noted)

Item and Group	Indexes			Percent change from -
	Dec. 2015	Jan. 2016	Feb. 2016	Feb. 2015	Dec. 2015	Jan. 2016
All items	212.936	-	214.505	2.0	0.7	-
All items (1967 = 100)	682.962	-	687.994
Food and beverages	225.265	-	224.627	0.8	-0.3	-
Food	225.223	-	224.300	0.7	-0.4	-
Food at home	225.620	225.074	223.653	0.1	-0.9	-0.6
Food away from home	220.377	-	220.716	1.4	0.2	-
Alcoholic beverages	215.618	-	219.256	2.5	1.7	-
Housing	206.035	-	208.584	5.2	1.2	-
Shelter	246.632	248.510	248.732	5.6	0.9	0.1
Rent of primary residence (1)	239.289	240.843	241.388	6.2	0.9	0.2
Owners' equivalent rent of residences (1) (2)	228.923	230.635	230.610	5.5	0.7	0.0
Owners' equivalent rent of primary residence (1) (2)	228.923	230.635	230.610	5.5	0.7	0.0
Fuels and utilities	151.864	-	150.545	-6.1	-0.9	-
Household energy	131.333	133.746	130.081	-8.4	-1.0	-2.7
Energy services (1) (3)	128.985	131.504	127.855	-8.3	-0.9	-2.8
Electricity (1)	127.378	130.345	127.720	-7.7	0.3	-2.0
Utility (piped) gas service (1)	126.007	126.002	117.416	-11.6	-6.8	-6.8
Household furnishings and operations	129.144	-	136.536	13.8	5.7	-
Apparel	169.216	-	181.891	2.0	7.5	-
Transportation	169.190	-	166.973	-2.6	-1.3	-
Private transportation	167.498	-	163.732	-3.4	-2.2	-
Motor fuel	161.669	151.469	139.436	-23.5	-13.8	-7.9
Gasoline (all types)	161.391	151.229	139.140	-23.0	-13.8	-8.0
Gasoline, unleaded regular (4)	162.674	152.275	139.539	-24.1	-14.2	-8.4
Gasoline, unleaded midgrade (4) (5)	176.334	164.283	153.472	-19.7	-13.0	-6.6
Gasoline, unleaded premium (4)	180.149	170.842	160.285	-16.4	-11.0	-6.2
Medical care	446.557	-	455.213	2.4	1.9	-
Recreation (6)	101.154	-	102.851	0.8	1.7	-
Education and communication (6)	125.032	-	125.123	0.5	0.1	-
Other goods and services	389.155	-	390.389	0.5	0.3	-
Commodity and service group
Commodities	169.059	-	169.035	-1.6	0.0	-
Commodities less food and beverages	141.888	-	142.120	-3.1	0.2	-
Nondurables less food and beverages	179.739	-	177.974	-6.0	-1.0	-
Durables	104.281	-	105.788	0.3	1.4	-
Services	258.425	-	261.438	4.5	1.2	-
Special aggregate indexes
All items less shelter	200.290	-	201.653	0.5	0.7	-
All items less medical care	201.428	-	202.723	2.0	0.6	-
Commodities less food	144.391	-	144.712	-2.9	0.2	-
Nondurables	202.686	-	201.483	-2.4	-0.6	-
Nondurables less food	181.633	-	180.191	-5.5	-0.8	-
Services less rent of shelter (2)	269.895	-	273.876	3.5	1.5	-
Services less medical care services	239.221	-	241.986	4.8	1.2	-
Energy	144.962	141.933	134.637	-16.0	-7.1	-5.1
All items less energy	222.583	-	225.368	3.4	1.3	-
All items less food and energy	221.970	-	225.372	3.9	1.5	-
(1) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator. (2) Indexes on a December 1982=100 base. (3) Prior to January 2011 this series was titled Gas (piped) and electricity. (4) Special index based on a substantially smaller sample. (5) Indexes on a December 1993=100 base. (6) Indexes on a December 1997=100 base.
Note: Index applies to a month as a whole, not to any specific date.