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18-13-SAN
Friday, January 12, 2018

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Consumer Price Index, Phoenix – Second Half 2017

Area prices were up 1.0 percent over the past six months, up 2.2 percent from a year ago

Prices in the Phoenix Area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased 1.0 percent in the second half of 2017, 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 electricity. (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 rose 2.2 percent.  (See chart 1 and table A.) Energy prices rose 6.1 percent, largely the result of an increase in the price of gasoline. The index for all items less food and energy advanced 2.1 percent over the year. (See table 1.)

Food

Food prices decreased 0.3 percent in the second half of 2017. (See table 1.) Prices for food at home decreased 0.8 percent, but prices for food away from home increased 0.4 percent for the same period.

Over the year, food prices increased 0.5 percent. Prices for food away from home increased 3.6 percent since a year ago, but prices for food at home moved down 1.6 percent.

Energy

The energy index increased 8.4 percent since the first half of 2017. The increase was mainly due to higher prices for electricity (13.0 percent). Prices for natural gas service increased 5.1 percent, and prices for gasoline increased 4.2 percent for the same period.

Energy prices advanced 6.1 percent over the year, largely due to higher prices for gasoline (9.7 percent). Prices paid for natural gas service moved up 11.2 percent, and prices for electricity advanced 2.5 percent during the past year.

All items less food and energy

The index for all items less food and energy rose 0.6 percent in the latest six-month period. Higher prices for shelter (1.9 percent) and education and communication (0.2 percent) were partially offset by lower prices for apparel (-5.7 percent) and recreation (-0.5 percent).

Over the year, the index for all items less food and energy advanced 2.1 percent. Components contributing to the increase included shelter (4.6 percent) and recreation (0.9 percent). Partly offsetting the increases were price declines in education and communication (-3.0 percent) and apparel (-2.4 percent).

Table A. Phoenix CPI-U semi-annual and annual percent changes (not seasonally adjusted)
Month 2012 2013 2014 2015 2016 2017
Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual

First Half

1.6 2.8 1.1 1.2 1.2 1.5 -0.7 -0.2 0.3 1.4 1.2 2.7

Second Half

0.1 1.7 0.2 1.3 0.5 1.8 1.1 0.5 1.6 1.8 1.0 2.2

The February 2018 Consumer Price Index for the Phoenix area is scheduled to be released March 13, 2018.

Consumer Price Index Geographic Revision for 2018

In January 2018, BLS will introduce a new geographic area sample for the Consumer Price Index (CPI). This index will change to a bimonthly publication schedule beginning in February, 2018. The first indexes using the new structure will be published in February 2018. Additional information on the geographic revision is available at: www.bls.gov/cpi/georevision2018.htm.


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/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 Phoenix-Mesa 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 for semiannual averages and percent changes for selected periods

Phoenix-Mesa, AZ(1)(December 2001=100 unless otherwise noted)
Item and Group

 
Semiannual average indexes
 
Percent change to
2nd half 2017 from-
2nd half
2016
1st half
2017
2nd half
2017
2nd half
2016
1st half
2017

Expenditure category

 
 

All items

131.112 132.653 133.995 2.2 1.0

Food and beverages

142.300 144.044 143.421 0.8 -0.4

Food

143.468 144.695 144.248 0.5 -0.3

Food at home

143.493 142.371 141.176 -1.6 -0.8

Food away from home

144.384 148.933 149.538 3.6 0.4

Alcoholic beverages

130.346 138.171 135.474 3.9 -2.0

Housing

131.331 132.986 136.472 3.9 2.6

Shelter

132.291 135.788 138.392 4.6 1.9

Rent of primary residence(2)

137.739 142.260 144.905 5.2 1.9

Owners' equiv. rent of residences(2)

131.200 133.941 137.094 4.5 2.4

Owners' equiv. rent of primary residence(2)

131.200 133.941 137.094 4.5 2.4

Fuels and utilities

170.170 160.370 174.866 2.8 9.0

Household energy

178.321 164.452 184.255 3.3 12.0

Energy services(2)

178.296 164.325 184.201 3.3 12.1

Electricity(2)

193.853 175.817 198.634 2.5 13.0

Utility (piped) gas service(2)

100.348 106.156 111.548 11.2 5.1

Household furnishings and operations

97.409 96.713 96.929 -0.5 0.2

Apparel

140.687 145.630 137.332 -2.4 -5.7

Transportation

114.466 116.847 118.064 3.1 1.0

Private transportation

115.503 117.884 119.663 3.6 1.5

Motor fuel

177.097 186.543 194.344 9.7 4.2

Gasoline (all types)

177.103 186.456 194.327 9.7 4.2

Gasoline, unleaded regular(3)

176.860 186.413 194.353 9.9 4.3

Gasoline, unleaded midgrade(3)

187.091 196.927 205.586 9.9 4.4

Gasoline, unleaded premium(3)

180.959 189.371 197.044 8.9 4.1

Medical care

166.428 168.743 - - -

Recreation

111.215 112.760 112.163 0.9 -0.5

Education and communication

123.091 119.143 119.352 -3.0 0.2

Other goods and services

143.996 144.105 143.223 -0.5 -0.6
 

Commodity and service group

 
 

All Items

131.112 132.653 133.995 2.2 1.0

Commodities

118.075 119.344 117.863 -0.2 -1.2

Commodities less food & beverages

105.787 106.812 104.882 -0.9 -1.8

Nondurables less food & beverages

134.225 136.785 134.444 0.2 -1.7

Durables

81.498 81.402 79.840 -2.0 -1.9

Services

140.033 141.763 145.127 3.6 2.4
 

Special aggregate indexes

 
 

All items less medical care

129.051 130.546 131.967 2.3 1.1

All items less shelter

130.313 130.877 131.589 1.0 0.5

Commodities less food

106.746 108.038 106.078 -0.6 -1.8

Nondurables

138.429 140.535 139.143 0.5 -1.0

Nondurables less food

133.933 136.956 134.583 0.5 -1.7

Services less rent of shelter

149.494 148.886 153.214 2.5 2.9

Services less medical care services

136.956 138.557 142.071 3.7 2.5

Energy

178.233 174.311 189.025 6.1 8.4

All items less energy

128.391 130.234 130.831 1.9 0.5

All items less food and energy

126.031 127.975 128.740 2.1 0.6

Footnotes
(1) This index will change to a bimonthly publication schedule in 2018. The index will be published for even months beginning February, 2018.
(2) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator.
(3) Special index based on a substantially smaller sample.
 

 

Last Modified Date: Friday, January 12, 2018