Tuesday, June 12, 2018
Prices in the Los Angeles area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), rose 0.4 percent in May, the U.S. Bureau of Labor Statistics reported today. (See table A.) Assistant Commissioner for Regional Operations Richard Holden noted that the May increase was influenced by higher prices for shelter and gasoline. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect seasonal influences.)
Over the last 12 months, the CPI-U increased 4.1 percent. (See chart 1 and table A.) Energy prices jumped 14.5 percent, largely the result of an increase in the price of gasoline. The index for all items less food and energy rose 3.7 percent over the year. (See table 1.)
Food prices declined 0.4 percent for the month of May. (See table 1.) Prices for food at home decreased 0.8 percent, but prices for food away from home inched up 0.1 percent for the same period.
Over the year, food prices advanced 1.6 percent. Prices for food away from home rose 3.4 percent since a year ago, and prices for food at home inched up 0.1 percent.
The energy index advanced 4.2 percent over the month. The increase was mainly due to higher prices for gasoline (3.8 percent). Prices for natural gas service jumped 22.1 percent, while prices for electricity were unchanged for the same period.
Energy prices jumped 14.5 percent over the year, largely due to higher prices for gasoline (23.4 percent). Prices paid for electricity rose 2.4 percent, but prices for natural gas service declined 5.9 percent during the past year.
The index for all items less food and energy rose 0.2 percent in May. Higher prices for recreation (1.5 percent) and shelter (0.6 percent) were partially offset by lower prices for apparel (-5.6 percent) and household furnishings and operations (-1.2 percent).
Over the year, the index for all items less food and energy rose 3.7 percent. Components contributing to the increase included shelter (5.6 percent) and medical care (2.5 percent). Partly offsetting the increases were price declines in recreation (-1.6 percent) and household furnishings and operations (-0.4 percent).
The June 2018 Consumer Price Index for the Los Angeles-Long Beach-Anaheim area is scheduled to be released on July 12, 2018.
In January 2018, BLS introduced a new geographic area sample for the Consumer Price Index (CPI). As part of the new sample, Los Angeles and Riverside have separate indexes. The first indexes using the new structure are published for the first time this month. Additional information on the geographic revision is available at: www.bls.gov/cpi/additional-resources/geographic-revision-2018.htm.
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/homch17_a.htm.
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 Los Angeles-Long Beach-Anaheim. metropolitan area covered in this release is comprised of Los Angeles and Orange Counties 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.
|Item and Group||Indexes||Percent change from-|
All items (1967=100)
Food and beverages
Food at home
Cereals and bakery products
Meats, poultry, fish, and eggs
Dairy and related products
Fruits and vegetables
Nonalcoholic beverages and beverage materials(1)
Other food at home
Food away from home
Food away from home
Rent of primary residence(2)
Fuels and utilities
Utility (piped) gas service(2)
Household furnishings and operations
New and used motor vehicles(4)
Used cars and trucks(1)
Gasoline (all types)
Gasoline, unleaded regular(4)
Gasoline, unleaded premium(4)
Motor vehicle insurance(1)
Education and communication(6)
Tuition, other school fees, and child care(1)
Other goods and services
Commodity and service group
Commodities less food & beverages
Nondurables less food & beverages
Special aggregate indexes
All items less medical care
All items less shelter
Commodities less food
Nondurables less food
Services less rent of shelter(3)
Services less medical care services
All items less energy
All items less food and energy
- Data not available
Last Modified Date: Tuesday, June 12, 2018