Prices in the Phoenix area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased 1.4 percent for the two months ending in October 2019, the U.S. Bureau of Labor Statistics reported today. (See table A.) Assistant Commissioner for Regional Operations Richard Holden noted that the October increase was influenced by higher prices for medical care. (Data in this report are not seasonally adjusted. Accordingly, bi-monthly changes may reflect seasonal influences.)

Over the last 12 months, the CPI-U rose 3.8 percent. (See chart 1 and table A.) The index for all items less food and energy increased 4.2 percent over the year. Food prices rose 3.4 percent. Energy prices inched up 0.1 percent, largely the result of an increase in the price of gasoline. (See table 1.)

Food

Food prices advanced 1.4 percent for the two months ending in October. (See table 1.) Prices for food at home rose 1.6 percent, and prices for food away from home increased 1.1 percent for the same period.

Over the year, food prices rose 3.4 percent. Prices for food at home advanced 4.2 percent since a year ago, and prices for food away from home increased 2.4 percent.

Energy

The energy index rose 2.5 percent for the two months ending in October. The increase was mainly due to higher prices for gasoline (6.8 percent). Prices for electricity declined 2.8 percent, and prices for natural gas service declined 1.5 percent for the same period.

Energy prices inched up 0.1 percent over the year, largely due to higher prices for gasoline (1.8 percent). Prices paid for natural gas service dropped 10.2 percent, and prices for electricity decreased 0.9 percent during the past year.

All items less food and energy

The index for all items less food and energy advanced 1.4 percent in the latest two-month period. Higher prices for medical care (11.1 percent), other goods and services (2.3 percent), and shelter (0.6 percent) were partially offset by lower prices for used cars and trucks (-3.8 percent) and recreation (-0.6 percent).

Over the year, the index for all items less food and energy increased 4.2 percent. Components contributing to the increase included medical care (16.0 percent) and shelter (5.4 percent). Partly offsetting the increases were price declines in apparel (-2.5 percent) and education and communication (-1.4 percent).

The December 2019 Consumer Price Index for the Phoenix area is scheduled to be released on January 14, 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 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 Phoenix-Mesa-Scottsdale metropolitan area covered in this release consists of Maricopa and Pinal Counties in the State of Arizona.

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

Phoenix-Mesa-Scottsdale (December 2001=100 unless otherwise noted)

Item and Group	Indexes			Percent change from-
	Aug. 2019	Sep. 2019	Oct. 2019	Oct. 2018	Aug. 2019	Sep. 2019
Expenditure category
All items	143.760	-	145.833	3.8	1.4	-
Food and beverages	148.522	-	150.047	3.1	1.0	-
Food	149.490	-	151.519	3.4	1.4	-
Food at home	144.524	146.800	146.811	4.2	1.6	0.0
Cereals and bakery products	184.691	-	189.444	4.5	2.6	-
Meats, poultry, fish, and eggs	178.203	-	183.387	4.4	2.9	-
Dairy and related products	110.083	-	113.307	7.2	2.9	-
Fruits and vegetables	132.898	-	128.122	3.1	-3.6	-
Nonalcoholic beverages and beverage materials	104.379	-	105.863	-0.9	1.4	-
Other food at home	141.436	-	145.560	5.6	2.9	-
Food away from home	157.484	-	159.174	2.4	1.1	-
Alcoholic beverages	140.358	-	137.042	0.0	-2.4	-
Housing	150.385	-	150.860	4.9	0.3	-
Shelter	155.755	156.350	156.743	5.4	0.6	0.3
Rent of primary residence	164.237	165.375	165.859	6.8	1.0	0.3
Owners' equiv. rent of residences	153.586	154.718	155.395	5.5	1.2	0.4
Owners' equiv. rent of primary residence	153.586	154.718	155.395	5.5	1.2	0.4
Fuels and utilities	174.597	-	171.364	0.0	-1.9	-
Household energy	181.116	176.633	176.470	-1.8	-2.6	-0.1
Energy services	181.072	176.538	176.258	-1.9	-2.7	-0.2
Electricity	197.659	192.402	192.170	-0.9	-2.8	-0.1
Utility (piped) gas service	98.234	97.247	96.744	-10.2	-1.5	-0.5
Household furnishings and operations	100.948	-	100.864	6.0	-0.1	-
Apparel	136.752	-	137.049	-2.5	0.2	-
Transportation	129.182	-	131.000	-0.1	1.4	-
Private transportation	130.529	-	132.756	0.1	1.7	-
New and used motor vehicles	92.755	-	92.519	-1.7	-0.3	-
New vehicles	93.734	-	93.993	-0.6	0.3	-
Used cars and trucks	87.789	-	84.428	2.0	-3.8	-
Motor fuel	236.285	248.501	252.012	1.6	6.7	1.4
Gasoline (all types)	236.562	249.053	252.611	1.8	6.8	1.4
Gasoline, unleaded regular(1)	237.442	250.314	254.074	1.9	7.0	1.5
Gasoline, unleaded midgrade(1)	247.382	258.267	262.284	1.3	6.0	1.6
Gasoline, unleaded premium(1)	235.539	246.493	248.921	1.5	5.7	1.0
Motor vehicle insurance	168.981	-	168.981	-1.8	0.0	-
Medical care	182.302	-	202.553	16.0	11.1	-
Recreation	117.277	-	116.559	0.7	-0.6	-
Education and communication	116.657	-	116.834	-1.4	0.2	-
Tuition, other school fees, and child care	200.384	-	200.384	2.1	0.0	-
Other goods and services	146.587	-	149.993	3.1	2.3	-
Commodity and service group
All items	143.760	-	145.833	3.8	1.4	-
Commodities	122.930	-	127.112	4.1	3.4	-
Commodities less food & beverages	109.815	-	115.180	4.7	4.9	-
Nondurables less food & beverages	145.748	-	158.614	7.5	8.8	-
Durables	79.588	-	79.004	0.6	-0.7	-
Services	158.083	-	158.788	3.6	0.4	-
Special aggregate indexes
All items less medical care	141.514	-	142.360	2.7	0.6	-
All items less shelter	137.450	-	140.082	2.8	1.9	-
Commodities less food	110.985	-	115.984	4.5	4.5	-
Nondurables	147.440	-	154.529	5.3	4.8	-
Nondurables less food	145.301	-	156.725	6.9	7.9	-
Services less rent of shelter	160.437	-	160.768	1.5	0.2	-
Services less medical care services	154.975	-	155.381	3.3	0.3	-
Energy	206.048	209.627	211.231	0.1	2.5	0.8
All items less energy	140.178	-	142.076	4.1	1.4	-
All items less food and energy	138.669	-	140.545	4.2	1.4	-
Footnotes (1) Special index based on a substantially smaller sample.
- Data not available NOTE: Index applies to a month as a whole, not to any specific date.