Prices in the San Diego Area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased 1.5 percent in the second half of 2016, the U.S. Bureau of Labor Statistics reported today. (See table A.) Assistant Commissioner for Regional Operations Richard Holden noted that this latest six-month increase was influenced by higher prices for shelter and apparel. (Data in this report are not seasonally adjusted. Accordingly, six-month-to-six-month changes may reflect seasonal influences.)

Over the last 12 months, the CPI-U advanced 2.0 percent.  (See chart 1 and table A.) Energy prices declined 7.7 percent, largely the result of a decrease in the price of gasoline. The index for all items less food and energy advanced 3.1 percent over the year. (See table 1.)

Food

Food prices decreased 0.3 percent in the second half of 2016. (See table 1.) Prices for food at home decreased 1.2 percent, but prices for food away from home rose 0.8 percent for the same period.

Over the year, food prices advanced 0.4 percent. Prices for food away from home increased 2.7 percent since a year ago, but prices for food at home declined 1.5 percent.

Energy

The energy index increased 3.0 percent since the first half of 2016. The increase was mainly due to higher prices for electricity (5.7 percent). Prices for natural gas service increased 10.5 percent, and prices for gasoline rose 0.6 percent for the same period.

Energy prices decreased 7.7 percent over the year, largely due to lower prices for gasoline (-15.0 percent). Prices paid for natural gas service increased 5.7 percent, and prices for electricity increased 4.1 percent during the past year.

All items less food and energy

The index for all items less food and energy rose 1.8 percent in the latest six-month period. Components contributing to the increase included apparel (5.3 percent), recreation (3.5 percent), and shelter (2.5 percent).

Over the year, the index for all items less food and energy advanced 3.1 percent. Components contributing to the increase included apparel (7.0 percent) and shelter (4.4 percent). Partly offsetting the increases were price declines in household furnishings and operations (-0.7 percent) and education and communication (-0.2 percent).

Table A. San Diego CPI-U monthly and annual percent changes (not seasonally adjusted)

Month	2011		2012		2013		2014		2015		2016
	Semi-annual	Annual	Semi-annual	Annual	Semi-annual	Annual	Semi-annual	Annual	Semi-annual	Annual	Semi-annual	Annual
First Half	2.3	3.4	1.3	1.7	0.6	0.9	1.4	2.4	0.9	0.8	0.4	2.0
Second Half	0.4	2.7	0.3	1.5	1.1	1.7	-0.1	1.3	1.6	2.4	1.5	2.0

The First Half of 2017 Consumer Price Index for the San Diego is scheduled to be released on July 14, 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 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 San Diego, CA metropolitan area covered in this release consists of San Diego County in the State of California.

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 for semiannual averages and percent changes for selected periods

San Diego, CA (1982-84=100 unless otherwise noted)

Item and Group	Semiannual average indexes			Percent change to 2nd half 2016 from-
	2nd half 2015	1st half 2016	2nd half 2016	2nd half 2015	1st half 2016
Expenditure category
All items	271.526	272.628	276.837	2.0	1.5
All items (1967=100)	918.113	921.839	936.069	-	-
Food and beverages	249.132	250.802	249.953	0.3	-0.3
Food	246.216	247.966	247.261	0.4	-0.3
Food at home	225.186	224.494	221.896	-1.5	-1.2
Food away from home	272.984	278.205	280.339	2.7	0.8
Alcoholic beverages	270.880	271.582	269.043	-0.7	-0.9
Housing	306.480	310.972	318.689	4.0	2.5
Shelter	344.181	350.446	359.328	4.4	2.5
Rent of primary residence	337.405	343.020	350.857	4.0	2.3
Owners' equiv. rent of residences(1)	365.724	372.674	379.648	3.8	1.9
Owners' equiv. rent of primary residence(1)	365.724	372.674	379.648	3.8	1.9
Fuels and utilities	281.951	284.088	297.785	5.6	4.8
Household energy	250.290	244.828	260.242	4.0	6.3
Energy services	245.151	240.003	256.076	4.5	6.7
Electricity	236.897	233.377	246.655	4.1	5.7
Utility (piped) gas service	193.952	185.479	204.947	5.7	10.5
Household furnishings and operations	185.266	183.793	184.004	-0.7	0.1
Apparel	144.477	146.727	154.573	7.0	5.3
Transportation	215.297	205.418	205.124	-4.7	-0.1
Private transportation	207.683	196.071	196.296	-5.5	0.1
Motor fuel	259.681	219.589	220.884	-14.9	0.6
Gasoline (all types)	259.987	219.773	220.989	-15.0	0.6
Gasoline, unleaded regular(2)	269.791	227.481	228.832	-15.2	0.6
Gasoline, unleaded midgrade(2)(3)	224.045	189.936	192.187	-14.2	1.2
Gasoline, unleaded premium(2)	264.272	225.955	226.391	-14.3	0.2
Medical care	-	-	-	-	-
Recreation(4)	149.623	149.835	155.012	3.6	3.5
Education and communication(4)	145.705	145.529	145.421	-0.2	-0.1
Other goods and services	370.311	376.381	376.440	1.7	0.0
Commodity and service group
All Items	271.526	272.628	276.837	2.0	1.5
Commodities	197.256	193.789	193.756	-1.8	0.0
Commodities less food & beverages	169.738	163.718	164.100	-3.3	0.2
Nondurables less food & beverages	191.030	182.225	185.256	-3.0	1.7
Durables	147.191	145.336	142.460	-3.2	-2.0
Services	337.066	342.113	350.117	3.9	2.3
Special aggregate indexes
All items less medical care	263.430	264.169	268.293	1.8	1.6
All items less shelter	243.430	242.232	244.491	0.4	0.9
Commodities less food	174.224	168.454	168.727	-3.2	0.2
Nondurables	220.963	216.911	218.079	-1.3	0.5
Nondurables less food	198.086	189.833	192.515	-2.8	1.4
Services less rent of shelter(1)	347.016	350.633	357.854	3.1	2.1
Services less medical care services	325.600	330.490	338.590	4.0	2.5
Energy	251.966	225.813	232.520	-7.7	3.0
All items less energy	275.057	278.406	282.473	2.7	1.5
All items less food and energy	281.618	285.278	290.280	3.1	1.8
Footnotes (1) Index is on a December 1982=100 base. (2) Special index based on a substantially smaller sample. (3) Indexes on a December 1993=100 base. (4) Indexes on a December 1997=100 base.
- Data not available.