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News Release Information

24-55-SAN
Thursday, January 11, 2024

Contacts Technical information: Media contact:
  • (415) 625-2270

Consumer Price Index, Phoenix area — December 2023

Area prices were down 0.9 percent over the past two months, up 2.7 percent from a year ago

Prices in the Phoenix area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), declined 0.9 percent for the two months ending in December 2023, the U.S. Bureau of Labor Statistics reported today. (See table A.) Regional Commissioner Chris Rosenlund noted that the December decrease was influenced by lower prices for gasoline. (Data in this report are not seasonally adjusted. Accordingly, bi-monthly changes may reflect seasonal influences.)

Over the last 12 months, the CPI-U advanced 2.7 percent. (See chart 1 and table A.) Food prices advanced 3.3 percent. Energy prices declined 0.7 percent, largely the result of a decrease in the price of gasoline. The index for all items less food and energy rose 2.8 percent over the year. (See table 1.)

Food

Food prices advanced 0.1 percent for the two months ending in December. (See table 1.) Prices for food at home decreased 0.4 percent, with lower prices in four of the six grocery categories. Prices for food away from home increased 0.8 percent for the same period.

Over the year, food prices advanced 3.3 percent. Prices for food at home advanced 1.3 percent since a year ago, with higher prices in four of the six grocery categories. Prices for food away from home increased 6.4 percent.

Energy

The energy index decreased 16.9 percent for the two months ending in December. The decrease was mainly due to lower prices for gasoline (-25.5 percent). Prices for electricity fell 7.2 percent, but prices for natural gas service advanced 0.6 percent for the same period.

Energy prices declined 0.7 percent over the year, largely due to lower prices for gasoline (-8.7 percent). Prices paid for natural gas service advanced 18.4 percent, and prices for electricity increased 8.6 percent during the past year.

All items less food and energy

The index for all items less food and energy increased 0.2 percent in the latest two-month period. Higher prices for medical care (9.4 percent) and education and communication (0.5 percent) were partially offset by lower prices for apparel (-3.0 percent) and shelter (-0.7 percent).

Over the year, the index for all items less food and energy rose 2.8 percent. Components contributing to the increase included medical care (13.4 percent) and shelter (4.1 percent). Partly offsetting the increases were price decreases in used cars and trucks (-3.0 percent) and household furnishings and operations (-2.5 percent).

Table A. Phoenix-Mesa-Scottsdale, AZ, CPI-U 2-month and 12-month percent changes, all items index, not seasonally adjusted
Month 2019 2020 2021 2022 2023
2-month 12-month 2-month 12-month 2-month 12-month 2-month 12-month 2-month 12-month

February

-0.3 2.1 0.6 4.4 1.0 1.0 2.1 10.9 1.2 8.5

April

1.4 2.3 -1.4 1.5 2.4 4.9 2.5 11.0 1.5 7.4

June

1.0 2.2 1.5 2.0 1.9 5.4 3.1 12.3 0.2 4.4

August

0.5 3.0 0.4 1.8 0.2 5.1 0.8 13.0 0.1 3.7

October

1.4 3.8 0.3 0.7 2.2 7.1 1.4 12.1 0.6 2.9

December

-0.6 3.4 -0.8 0.5 1.7 9.7 -0.7 9.5 -0.9 2.7

The February 2024 Consumer Price Index for the Phoenix area is scheduled to be released on March 12, 2024.


Technical Note

The Consumer Price Index (CPI) is a measures 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 U.S. population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 29 percent of the total U.S. 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 6,000 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; for most of the CPI-U the reference base is 1982-84 equals 100. An increase of 7 percent from the reference base, for example, is shown as 107.000.  Alternatively, that relationship can also be expressed as the price of a base period market basket of goods and services rising from $100 to $107. For further details see the CPI home page on the internet at www.bls.gov/cpi and the CPI section of the BLS Handbook of Methods 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 individuals with sensory impairments upon request. Voice phone: 202-691-5200; Telecommunications Relay Service: 7-1-1.

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-
Historical
data
Oct.
2023
Nov.
2023
Dec.
2023
Dec.
2022
Oct.
2023
Nov.
2023

Expenditure category

All items

181.391 - 179.733 2.7 -0.9 -

Food and beverages

185.935 - 186.011 3.0 0.0 -

Food

188.936 - 189.076 3.3 0.1 -

Food at home

182.841 180.880 182.089 1.3 -0.4 0.7

Cereals and bakery products

239.559 234.235 244.546 6.8 2.1 4.4

Meats, poultry, fish, and eggs

214.171 209.998 213.097 -3.9 -0.5 1.5

Dairy and related products

150.083 146.842 146.864 -3.4 -2.1 0.0

Fruits and vegetables

161.060 159.008 161.273 5.1 0.1 1.4

Nonalcoholic beverages and beverage materials

136.358 136.149 134.636 3.1 -1.3 -1.1

Other food at home

182.276 182.695 180.425 1.0 -1.0 -1.2

Food away from home

200.591 - 202.237 6.4 0.8 -

Alcoholic beverages

153.237 - 152.583 -0.6 -0.4 -

Housing

204.782 - 202.824 3.8 -1.0 -

Shelter

221.167 219.788 219.637 4.1 -0.7 -0.1

Rent of primary residence

238.200 238.078 237.888 5.5 -0.1 -0.1

Owners' equiv. rent of residences

217.809 218.116 217.686 3.7 -0.1 -0.2

Owners' equiv. rent of primary residence

217.809 218.116 217.686 3.7 -0.1 -0.2

Fuels and utilities

202.032 - 195.033 9.0 -3.5 -

Household energy

201.658 188.633 188.573 9.2 -6.5 0.0

Energy services

201.450 188.396 188.302 9.5 -6.5 0.0

Electricity

209.505 194.484 194.380 8.6 -7.2 -0.1

Utility (piped) gas service

162.213 163.217 163.195 18.4 0.6 0.0

Household furnishings and operations

116.780 - 115.500 -2.5 -1.1 -

Apparel

145.815 - 141.390 -1.0 -3.0 -

Transportation

158.313 - 146.572 -3.9 -7.4 -

Private transportation

163.329 - 151.586 -3.3 -7.2 -

New and used motor vehicles

110.398 - 109.497 -2.0 -0.8 -

New vehicles

112.593 - 111.812 0.1 -0.7 -

Used cars and trucks

111.420 - 112.049 -3.0 0.6 -

Motor fuel

378.563 316.129 282.976 -8.9 -25.2 -10.5

Gasoline (all types)

376.878 314.012 280.676 -8.7 -25.5 -10.6

Gasoline, unleaded regular(1)

380.658 315.351 281.044 -9.1 -26.2 -10.9

Gasoline, unleaded midgrade(1)

390.729 329.383 295.728 -8.3 -24.3 -10.2

Gasoline, unleaded premium(1)

367.804 313.323 283.312 -7.5 -23.0 -9.6

Medical care

224.544 - 245.687 13.4 9.4 -

Recreation

125.644 - 125.913 -0.2 0.2 -

Education and communication

118.163 - 118.705 0.0 0.5 -

Tuition, other school fees, and child care

236.752 - 236.752 7.1 0.0 -

Other goods and services

173.599 - 172.593 1.4 -0.6 -

Commodity and service group

All items

181.391 - 179.733 2.7 -0.9 -

Commodities

149.082 - 144.440 -0.9 -3.1 -

Commodities less food & beverages

130.763 - 124.060 -3.3 -5.1 -

Nondurables less food & beverages

185.580 - 168.708 -2.0 -9.1 -

Durables

87.771 - 87.250 -4.6 -0.6 -

Services

204.173 - 204.889 4.8 0.4 -

Special aggregate indexes

All items less medical care

179.095 - 176.005 1.9 -1.7 -

All items less shelter

161.518 - 159.796 1.7 -1.1 -

Commodities less food

131.718 - 125.216 -3.2 -4.9 -

Nondurables

186.344 - 178.670 0.8 -4.1 -

Nondurables less food

183.050 - 167.567 -1.9 -8.5 -

Services less rent of shelter

181.466 - 185.400 5.8 2.2 -

Services less medical care services

202.321 - 200.719 3.7 -0.8 -

Energy

283.903 249.686 235.788 -0.7 -16.9 -5.6

All items less energy

175.940 - 176.330 2.9 0.2 -

All items less food and energy

173.853 - 174.281 2.8 0.2 -

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.

 

Last Modified Date: Thursday, January 11, 2024