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Wednesday, January 18, 2017

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Consumer Price Index, Portland – Second Half 2016

Area prices were up 1.8 percent over the past six months, up 2.6 percent from a year ago

Prices in the Portland Area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased 1.8 percent in the second half of 2016, 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 gasoline. (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 2.6 percent. (See chart 1 and table A.) Energy prices declined 3.9 percent, largely the result of a decrease in the price of gasoline. The index for all items less food and energy increased 3.6 percent over the year. (See table 1.)

Food

Food prices edged up 0.1 percent in the second half of 2016. (See table 1.) Prices for food away from home advanced 1.3 percent, but prices for food at home decreased 0.8 percent.

Over the year, food prices declined 0.3 percent. Prices for food at home decreased 1.6 percent, but prices for food away from home were 1.5 percent higher than a year ago.

Energy

The energy index advanced 6.0 percent since the first half of 2016. The increase was mainly due to higher prices for gasoline (10.5 percent). Prices for electricity rose 1.8 percent, but prices for natural gas service fell 0.8 percent.

Energy prices declined 3.9 percent over the year, largely due to lower prices for gasoline (-6.7 percent). Prices paid for natural gas service decreased 5.8 percent, and prices for electricity decreased 0.5 percent during the past year.

All items less food and energy

The index for all items less food and energy increased 1.9 percent in the latest six-month period. Higher prices for shelter (3.7 percent) and recreation (1.4 percent) were partially offset by lower prices for medical care (-0.9 percent) and household furnishings and operations (-0.8 percent).

Over the year, the index for all items less food and energy increased 3.6 percent. Components contributing to the increase included shelter (6.8 percent) and education and communication (1.6 percent). Partly offsetting the increases were price declines in medical care (-1.7 percent), and apparel (-0.1 percent).

Table A. Portland CPI-U semi-annual and annual percent changes (not seasonally adjusted)
Month 2011 2012 2013 2014 2015 2016
Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual

First Half

1.8 2.6 1.2 2.5 1.3 2.2 1.0 2.6 0.1 1.3 0.7 1.7

Second Half

1.3 3.1 0.9 2.1 1.5 2.8 1.2 2.3 1.0 1.1 1.8 2.6

The First Half of 2017 Consumer Price Index for the Portland-Salem, OR is scheduled to be released on July 14, 2017.


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 Portland-Salem, OR, WA metropolitan area covered in this release consists of Clackamas, Columbia, Marion, Multnomah, Polk, Washington, and Yamhill Counties in the State of Oregon and Clark County in the State of Washington.

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

Portland-Salem, OR-WA (1982-84=100 unless otherwise noted)
Item and Group

 
Semiannual average indexes
 
Percent change to
2nd half 2016 from-
2nd half
2015
1st half
2016
2nd half
2016
2nd half
2015
1st half
2016

Expenditure category

 
 

All items

245.405 247.143 251.710 2.6 1.8

All items (1967=100)

718.442 723.531 736.903 - -

Food and beverages

232.739 232.297 232.822 0.0 0.2

Food

235.428 234.485 234.769 -0.3 0.1

Food at home

219.360 217.569 215.919 -1.6 -0.8

Food away from home

261.379 261.834 265.226 1.5 1.3

Alcoholic beverages

205.985 210.728 213.679 3.7 1.4

Housing

248.253 254.357 262.228 5.6 3.1

Shelter

292.802 301.740 312.818 6.8 3.7

Rent of primary residence

292.109 302.277 314.295 7.6 4.0

Owners' equiv. rent of residences(1)

305.104 314.407 325.023 6.5 3.4

Owners' equiv. rent of primary residence(1)

305.104 314.407 325.023 6.5 3.4

Fuels and utilities

262.123 257.600 262.894 0.3 2.1

Household energy

208.248 202.297 204.951 -1.6 1.3

Energy services

256.444 248.908 251.943 -1.8 1.2

Electricity

300.854 294.026 299.251 -0.5 1.8

Utility (piped) gas service

165.000 156.704 155.421 -5.8 -0.8

Household furnishings and operations

103.998 105.882 105.048 1.0 -0.8

Apparel

126.788 126.307 126.708 -0.1 0.3

Transportation

217.482 213.566 219.120 0.8 2.6

Private transportation

220.921 214.429 223.478 1.2 4.2

Motor fuel

231.202 195.237 215.924 -6.6 10.6

Gasoline (all types)

233.415 197.111 217.892 -6.7 10.5

Gasoline, unleaded regular(2)

230.443 193.746 214.414 -7.0 10.7

Gasoline, unleaded midgrade(2)(3)

199.685 170.250 188.367 -5.7 10.6

Gasoline, unleaded premium(2)

219.688 188.269 207.417 -5.6 10.2

Medical care

540.855 536.015 531.392 -1.7 -0.9

Recreation(4)

108.598 107.822 109.339 0.7 1.4

Education and communication(4)

113.115 114.347 114.882 1.6 0.5

Other goods and services

469.041 467.414 474.017 1.1 1.4
 

Commodity and service group

 
 

All Items

245.405 247.143 251.710 2.6 1.8

Commodities

177.714 174.372 175.305 -1.4 0.5

Commodities less food & beverages

150.988 146.300 147.438 -2.4 0.8

Nondurables less food & beverages

188.622 178.594 181.847 -3.6 1.8

Durables

111.079 111.463 110.644 -0.4 -0.7

Services

313.596 320.472 328.749 4.8 2.6
 

Special aggregate indexes

 
 

All items less medical care

232.264 234.220 239.088 2.9 2.1

All items less shelter

227.369 226.027 227.889 0.2 0.8

Commodities less food

152.895 148.582 149.794 -2.0 0.8

Nondurables

209.410 204.134 205.991 -1.6 0.9

Nondurables less food

188.852 180.026 183.230 -3.0 1.8

Services less rent of shelter(1)

345.369 349.313 353.409 2.3 1.2

Services less medical care services

297.989 305.090 313.836 5.3 2.9

Energy

218.945 198.429 210.410 -3.9 6.0

All items less energy

250.870 254.398 258.442 3.0 1.6

All items less food and energy

255.632 260.086 264.916 3.6 1.9

Footnotes
(1) Index is on a December 1982=100 base.
(2) Special index based on a substantially smaller sample.
(3) Indexes on a December 1993=100 base.
(4) Indexes on a December 1997=100 base.
 

- Data not available.
 

 

Last Modified Date: Wednesday, January 18, 2017