Prices in the Los Angeles area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), decreased 0.6 percent in December, the U.S. Bureau of Labor Statistics reported today. (See table A.) Assistant Commissioner for Regional Operations Richard Holden noted that the December decrease was influenced by lower prices for 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 advanced 3.0 percent. (See chart 1 and table A.) The index for all items less food and energy rose 2.9 percent over the year. Food prices rose 2.6 percent. Energy prices advanced 4.1 percent, largely the result of an increase in the price of gasoline. (See table 1.)

Food

Food prices inched down 0.1 percent for the month of December. (See table 1.) Prices for food at home decreased 0.3 percent, while prices for food away from home were unchanged for the same period.

Over the year, food prices rose 2.6 percent. Prices for food away from home rose 4.5 percent since a year ago, and prices for food at home rose 0.8 percent.

Energy

The energy index decreased 4.7 percent over the month. The decrease was mainly due to lower prices for gasoline (-8.1 percent). Prices for electricity were unchanged, while prices for natural gas service jumped 10.5 percent for the same period.

Energy prices advanced 4.1 percent over the year, largely due to higher prices for gasoline (6.7 percent). Prices paid for electricity rose 3.3 percent, but prices for natural gas service dropped 10.0 percent during the past year.

All items less food and energy

The index for all items less food and energy decreased 0.3 percent in December. Lower prices for recreation (-1.5 percent) and shelter (-0.2 percent) were partially offset by higher prices for medical care (0.1 percent).

Over the year, the index for all items less food and energy rose 2.9 percent. Components contributing to the increase included shelter (4.8 percent) and medical care (2.3 percent). Partly offsetting the increases were price decreases in recreation (-1.7 percent) and household furnishings and operations (-0.1 percent).

Table A. Los Angeles-Long Beach-Anaheim, CA, CPI-U 1-month and 12-month percent changes, all items index, not seasonally adjusted

Month	2015		2016		2017		2018		2019
	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month
January	-0.3	-0.1	0.7	3.1	0.9	2.1	0.8	3.5	0.7	3.2
February	0.7	0.1	0.0	2.4	0.6	2.7	0.7	3.6	0.1	2.5
March	1.0	0.5	0.3	1.7	0.3	2.7	0.4	3.8	0.6	2.7
April	-0.1	0.5	0.2	2.0	0.2	2.7	0.4	4.0	1.0	3.3
May	1.0	1.1	0.5	1.4	0.3	2.5	0.4	4.1	0.2	3.1
June	-0.3	0.8	0.1	1.8	-0.2	2.2	-0.2	4.0	0.0	3.3
July	0.7	1.4	0.0	1.1	0.3	2.5	0.2	3.9	0.1	3.3
August	-0.3	1.1	0.0	1.4	0.3	2.8	0.2	3.9	0.0	3.0
September	-0.4	0.7	0.2	1.9	0.4	3.1	0.5	3.9	0.5	3.0
October	0.2	1.0	0.4	2.2	0.4	3.1	0.5	4.1	0.7	3.2
November	0.0	1.6	-0.4	1.8	0.1	3.6	-0.3	3.6	-0.3	3.2
December	-0.1	2.0	0.0	2.0	0.0	3.6	-0.3	3.2	-0.6	3.0

The January 2020 Consumer Price Index for the Los Angeles area is scheduled to be released on February 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/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.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods

Los Angeles-Long Beach-Anaheim (1982-84=100 unless otherwise noted)

Item and Group	Indexes			Percent change from-
	Oct. 2019	Nov. 2019	Dec. 2019	Dec. 2018	Oct. 2019	Nov. 2019
Expenditure category
All items	278.075	277.239	275.553	3.0	-0.9	-0.6
All items (1967=100)	821.558	819.088	814.106	-	-	-
Food and beverages	268.773	268.232	267.623	2.2	-0.4	-0.2
Food	269.868	269.725	269.400	2.6	-0.2	-0.1
Food at home	257.259	257.137	256.446	0.8	-0.3	-0.3
Cereals and bakery products	276.331	273.013	271.514	1.6	-1.7	-0.5
Meats, poultry, fish, and eggs	280.590	284.748	281.643	0.3	0.4	-1.1
Dairy and related products	249.190	252.231	253.042	4.5	1.5	0.3
Fruits and vegetables	347.434	341.367	342.395	1.7	-1.5	0.3
Nonalcoholic beverages and beverage materials(1)	253.321	255.707	259.489	-0.6	2.4	1.5
Other food at home	198.414	197.047	195.258	-1.0	-1.6	-0.9
Food away from home	279.400	279.237	279.297	4.5	0.0	0.0
Food away from home	279.400	279.237	279.297	4.5	0.0	0.0
Alcoholic beverages	237.752	231.925	227.556	-4.3	-4.3	-1.9
Housing	319.381	319.370	319.257	4.1	0.0	0.0
Shelter	368.322	370.434	369.854	4.8	0.4	-0.2
Rent of primary residence(2)	391.895	393.179	394.303	5.2	0.6	0.3
Owners' equiv. rent of residences(2)(3)	382.524	384.010	384.958	4.7	0.6	0.2
Owners' equiv. rent of primary residence(1)(2)	382.502	383.988	384.936	4.7	0.6	0.2
Fuels and utilities	337.793	326.698	331.851	0.8	-1.8	1.6
Household energy	290.446	276.725	283.097	-0.3	-2.5	2.3
Energy services(2)	288.848	275.203	281.858	-0.4	-2.4	2.4
Electricity(2)	331.131	330.012	330.012	3.3	-0.3	0.0
Utility (piped) gas service(2)	240.518	199.891	220.806	-10.0	-8.2	10.5
Household furnishings and operations	122.880	118.888	118.839	-0.1	-3.3	0.0
Apparel	109.325	106.580	106.453	2.8	-2.6	-0.1
Transportation	225.128	221.128	213.991	1.9	-4.9	-3.2
Private transportation	222.627	218.837	212.053	1.9	-4.7	-3.1
New and used motor vehicles(4)	91.183	90.685	89.681	-2.0	-1.6	-1.1
New vehicles(1)	168.472	168.689	168.357	-1.1	-0.1	-0.2
Used cars and trucks(1)	265.251	263.523	262.995	-1.1	-0.9	-0.2
Motor fuel	319.939	306.142	281.470	6.6	-12.0	-8.1
Gasoline (all types)	312.811	299.212	274.921	6.7	-12.1	-8.1
Gasoline, unleaded regular(4)	313.280	299.590	274.851	6.4	-12.3	-8.3
Gasoline, unleaded midgrade(4)(5)	300.817	287.692	265.897	7.1	-11.6	-7.6
Gasoline, unleaded premium(4)	297.181	284.650	263.520	7.2	-11.3	-7.4
Motor vehicle insurance(1)	782.920	782.920	782.920	1.0	0.0	0.0
Medical care	484.305	485.276	485.696	2.3	0.3	0.1
Recreation(6)	107.776	107.510	105.912	-1.7	-1.7	-1.5
Education and communication(6)	149.112	149.289	149.031	1.9	-0.1	-0.2
Tuition, other school fees, and child care(1)	1,959.569	1,959.569	1,959.856	3.5	0.0	0.0
Other goods and services	441.100	450.146	447.306	4.1	1.4	-0.6
Commodity and service group
All items	278.075	277.239	275.553	3.0	-0.9	-0.6
Commodities	188.209	185.573	182.787	1.4	-2.9	-1.5
Commodities less food & beverages	145.669	142.409	138.978	0.9	-4.6	-2.4
Nondurables less food & beverages	202.158	196.819	190.233	2.6	-5.9	-3.3
Durables	91.689	90.318	89.682	-2.0	-2.2	-0.7
Services	358.059	358.805	358.083	3.7	0.0	-0.2
Special aggregate indexes
All items less medical care	268.989	268.089	266.331	3.0	-1.0	-0.7
All items less shelter	238.399	236.218	234.021	1.7	-1.8	-0.9
Commodities less food	149.910	146.542	143.044	0.6	-4.6	-2.4
Nondurables	237.382	234.116	230.114	2.4	-3.1	-1.7
Nondurables less food	206.858	201.420	194.864	2.1	-5.8	-3.3
Services less rent of shelter(3)	352.824	351.611	350.670	2.0	-0.6	-0.3
Services less medical care services	346.147	346.853	346.037	3.6	0.0	-0.2
Energy	311.941	298.072	284.050	4.1	-8.9	-4.7
All items less energy	278.028	278.051	277.171	2.9	-0.3	-0.3
All items less food and energy	279.732	279.781	278.812	2.9	-0.3	-0.3
Footnotes (1) Indexes on a December 1977=100 base. (2) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator. (3) Indexes on a December 1982=100 base. (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.
- Data not available NOTE: Index applies to a month as a whole, not to any specific date.