Northeast Region Consumer Price Index: July 2008 (PDF)

Retail prices in the Northeast region, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), rose 0.8 percent in July, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  Sheila Watkins, the Bureau’s regional commissioner, noted that increases in the housing and food and beverages indexes were largely responsible for the recent advance; only the apparel and recreation indexes were lower since June.  The July level of 234.545 (1982-84=100) was 5.7 percent higher than a year ago—the largest 12-month increase since February 1991.  Over the same period, the core inflation rate, as measured by the all items less food and energy index, rose 2.6 percent.  (See table 1.)

Chart A.  1-month and 12-month percent changes ended July 2008 for the major categories of the CPI-U for the Northeast region, not seasonally adjusted

chart data

The housing index rose 1.3 percent in July, due primarily to higher shelter prices.  The shelter index, which includes rent of primary residence, lodging away from home, owners’ equivalent rent of primary residence, and tenants’ and household insurance, increased 1.0 percent over the month and was 2.1 percent higher over the year. Also contributing to the overall rise in the housing index were higher fuels and utilities prices, up 3.7 percent over the month.  Utility (piped) gas service prices jumped 8.3 percent in July to a level 27.1 percent higher than a year ago.  Electricity prices increased for the fourth consecutive month, up 13.4 percent since March and 2.9 percent over the month.  Since July 2007, electricity prices were 7.7 percent higher.  The fuels and utilities index advanced 22.5 percent since last year.  Prices for household furnishings and operations, the third component of the housing index, were down 0.5 percent in July and were 0.2 percent lower than last year.  Over the last 12 months, the overall housing index advanced 4.5 percent.

Due mostly to a 1.3-percent rise in food at home prices, the food and beverages index was up 1.0 percent since June.  Over the year, food at home prices rose 6.5 percent—the largest 12-month advance since April 1990.   Prices for food away from home (0.6 percent) and alcoholic beverages (0.8 percent) were also higher over the month; these two components posted over-the-year increases of 4.1 and 4.6 percent, respectively.  The overall food and beverages index advanced 5.4 percent over the last 12 months.

The transportation index rose 0.5 percent in July due mainly to higher gasoline prices, which rose for the fifth straight month, up 33.2 percent since February and 0.8 percent since June.  Gasoline prices were 38.0 percent higher over the year—the largest over-the-year increase since September 2005, when prices were 60.6 percent higher due to the effects of Hurricanes Katrina and Rita.  Since July 2007, the transportation index advanced 12.9 percent.

The other goods and services index increased for the seventh straight month, up 4.6 percent since December and 1.5 percent since June.  Over the year, the other goods and services index (which includes tobacco and smoking products, personal care products and services, and miscellaneous personal services such as legal, funeral, and laundry and dry cleaning services) was 5.2 percent higher.

The education and communication index was up 0.6 percent in July.  Due to increases in 10 of the last 12 months, the education and communication index was 5.1 percent higher than last year.

Following no change in June, medical care prices were up 0.4 percent in July, due largely to higher prices for medical care services.  Medical care services prices rose 0.5 percent over the month and 3.3 percent over the year. The medical care commodities index also increased, up 0.3 percent since last month and 3.5 percent since last year. The overall medical care index advanced 3.4 percent over the last 12 months.

The remaining categories had price declines in July.  The apparel index had a smaller-than-normal seasonal decrease of 2.1 percent over the month.  The recent June-July decrease was lower than the 3.2-percent average for the same one-month period for the last five years.  Despite the recent decline, apparel prices were 0.2 percent higher over the year. 

Following six consecutive months of increases totaling 2.6 percent, recreation prices inched down 0.1 percent in July.  Over the year, the recreation index was 2.5 percent higher.

The energy index, which reflects prices for gasoline and household fuels, increased 2.3 percent in July.  The recent advance was due mainly to higher prices for utility (piped) gas service (8.3 percent) and electricity (2.9 percent).  Also contributing to the advance in the overall energy index were higher gasoline prices (0.8 percent).  The energy index was 31.1 percent higher than in July 2007.

The Northeast region is comprised of Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

The relative importance of a component of the CPI is its expenditure or value weight expressed as a percentage of all items within an area.  Relative importance ratios show approximately how the index population distributes expenditures when the value weights are collected and represent an estimate of how consumers would distribute their expenditures as prices change over time.  Relative importance ratios cannot be used as estimates of current spending patterns or as indicators of changing consumer expenditures in the intervals between weight revisions because consumption patterns are influenced by factors—including income, variations in climate, family size, and availability of new and different kinds of goods and services—other than price change. (See table A.)

Last Modified Date: August 14, 2008