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 PLS – 4451
FOR RELEASE:
TUESDAY, SEPTEMBER 16, 2008

INFORMATION: Gerald Perrins
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Sheila Watkins
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Northeast Region Consumer Price Index: August 2008 (PDF)

Retail prices in the Northeast region, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), fell 0.3 percent in August, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  Sheila Watkins, the Bureau’s regional commissioner, noted that the recent decline was the first over-the-month decrease since September 2007.  Decreases in the transportation and housing indexes more than offset advances in most of the other major categories; the medical care and other goods and services indexes were unchanged over the month.  The August level of 233.788 (1982-84=100) was 5.5 percent higher than a year ago.  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 August 2008 for the major categories of the CPI-U for the Northeast region, not seasonally adjusted

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

Due in large part to lower gasoline prices, the transportation index declined for the first time since February, down 2.6 percent over the month.  Following five months of increases totaling 33.2 percent, gasoline prices dropped 7.1 percent in August—the largest one-month decrease since October 2006.  Due to increases in 9 of the last 12 months, gasoline prices were 34.8 percent higher than last year.  Also contributing to the one-month decrease in the overall transportation index were lower prices for new vehicles, down 0.8 percent over the month, and 0.3 percent over the year.  Despite the recent decline, the transportation index was 11.5 percent higher over the last 12 months. 

The housing index declined 0.4 percent in August, reflecting lower prices for fuels and utilities and for shelter.  The fuels and utilities index was down 1.5 percent over the month due mainly to lower utility (piped) gas service prices.  Utility gas service prices were 4.3 percent lower over the month but were 24.4 percent higher since last year.  Electricity prices rose for the fifth straight month, up 16.6 percent since March and 2.8 percent since July; electricity prices advanced 12.2 percent over the year.  Since August 2007, the fuels and utilities index rose 22.1 percent.  The shelter index, which includes rent of primary residence, lodging away from home, owners’ equivalent rent of primary residence, and tenants’ and household insurance, edged down 0.3 percent over the month, but was 2.1 percent higher over the year.  Prices for household furnishings and operations, the third component of the housing index, were up 0.2 percent in August and were 0.3 percent higher than last year.  Over the last 12 months, the overall housing index advanced 4.5 percent.

Following a 0.4-percent increase in July, medical care prices were unchanged in August. Due to 8 increases in the last 12 months, medical care prices rose 3.3 percent since last August.

The other goods and services index was also unchanged in August.  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 5.3 percent higher.

The remaining categories had higher prices in August.  Following three months of declines totaling 6.7 percent, the apparel index rose 3.3 percent in August.  The seasonal July-August increase was higher than the 2.8-percent average for the same one-month period for the previous five years.  Apparel prices were 1.3 percent higher than year-ago levels. 

Due largely to a 1.0-percent increase in food at home prices, the food and beverages index was up 0.6 percent since July.  Over the year, food at home prices rose 7.3 percent.  Prices for food away from home (0.2 percent) and alcoholic beverages (0.4 percent) were also higher over the month.  Since last August, food away from home prices rose 3.9 percent and alcoholic beverages prices advanced 4.9 percent.  The overall food and beverages index increased 5.7 percent over the last 12 months—the largest 12-month advance since April 1990.

Following normal seasonal patterns, the education and communication index was up 1.3 percent in August and was 5.1 percent higher than last year.  Recreation prices inched up 0.1 percent to a level 2.5 percent higher than a year ago.

The energy index, which reflects prices for gasoline and household fuels, fell 4.5 percent in August.  The recent decline reflected lower prices for both gasoline (-7.1 percent) and utility (piped) gas service (-4.3 percent).  Partially offsetting these decreases, electricity prices rose 2.8 percent over the month.  Despite the recent decline, the energy index was 29.1 percent higher than in August 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.)

Table A (2005-2006 weights). Relative importance of components in the Consumer Price Index, Northeast Region, December 2007
Item and group CPI-U
Expenditure category

All items

 100.000

Food and beverages

 15.009

Food

 13.961

Food at home

 7.703

Food away from home

 6.258

Alcoholic beverages

 1.048

Housing

 44.377

Shelter

 34.775

Rent of primary residence

 6.527

Owners' equivalent rent of primary residence

 24.696

Fuels and utilities

 5.691

Household energy

 5.043

Gas (piped) and electricity

 3.983

Electricity

 2.617

Utility (piped) gas service

 1.366

Household furnishings and operations

 3.911

Apparel

 3.697

Transportation

 16.030

Private transportation

 14.685

New and used motor vehicles

 6.306

New vehicles

 4.093

Used cars and trucks

 1.315

Motor fuel

 4.643

Gasoline (all types)

 4.472

Medical care

 5.780

Medical care commodities

 1.469

Medical care services

 4.311

Professional services

 2.512

Recreation

 5.387

Education and communication

 6.455

Other goods and services

 3.265
Commodity and service group

Commodities

 38.761

Commodities less food and beverages

 23.752

Nondurables less food and beverages

 14.799

Durables

 8.954

Services

 61.239
Special aggregate indexes

All items less medical care

 94.220

All items less shelter

 65.225

Commodities less food

 24.800

Nondurables

 29.807

Nondurables less food

 15.846

Services less rent of shelter

 26.745

Services less medical care services

 56.928

Energy

 9.686

All items less energy

 90.314

All items less food and energy

 76.353
Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods, Northeast (1982-84=100 unless otherwise noted)
Expenditure category Indexes Percent change from-
June 2008 July 2008 Aug. 2008 Aug. 2007 June 2008 July 2008

All items

 232.649 234.545 233.788 5.5 0.5 -0.3

Food and beverages

 217.241 219.381 220.693 5.7 1.6 0.6

Food

 216.856 219.022 220.373 5.8 1.6 0.6

Food at home

 216.993 219.811 221.916 7.3 2.3 1.0

Food away from home

 219.696 221.073 221.490 3.9 0.8 0.2

Alcoholic beverages

 221.211 222.971 223.754 4.9 1.1 0.4

Housing

 245.344 248.478 247.506 4.5 0.9 -0.4

Shelter

 286.537 289.487 288.753 2.1 0.8 -0.3

Rent of primary residence (1)

 273.571 275.313 276.510 4.4 1.1 0.4

Owners' equivalent rent of primary residence (1) (2)

 293.568 293.833 294.241 1.9 0.2 0.1

Fuels and utilities

 246.288 255.437 251.685 22.1 2.2 -1.5

Household energy

 235.551 244.871 240.427 24.0 2.1 -1.8

Gas (piped) and electricity (1)

 220.771 231.272 231.892 16.5 5.0 0.3

Electricity (1)

 197.985 203.777 209.483 12.2 5.8 2.8

Utility (piped) gas service (1)

 262.683 284.371 272.050 24.4 3.6 -4.3

Household furnishings and operations

 129.114 128.437 128.708 0.3 -0.3 0.2

Apparel

 114.157 111.732 115.467 1.3 1.1 3.3

Transportation

 208.424 209.419 203.979 11.5 -2.1 -2.6

Private transportation

 202.410 203.358 197.550 11.4 -2.4 -2.9

New and used motor vehicles (3)

 92.782 93.137 92.342 -0.1 -0.5 -0.9

New vehicles

 134.544 134.549 133.435 -0.3 -0.8 -0.8

New cars and trucks (3) (4)

 93.326 93.256 92.474 -0.3 -0.9 -0.8

New cars (4)

 133.377 133.794 132.564 -0.2 -0.6 -0.9

Used cars and trucks

 140.978 140.913 140.617 -1.0 -0.3 -0.2

Motor fuel

 336.641 339.083 314.987 35.1 -6.4 -7.1

Gasoline (all types)

 333.952 336.470 312.446 34.8 -6.4 -7.1

Gasoline, unleaded regular (4)

 337.919 340.279 315.178 35.3 -6.7 -7.4

Gasoline, unleaded midgrade (4) (5)

 336.322 339.074 316.706 34.3 -5.8 -6.6

Gasoline, unleaded premium (4)

 316.891 319.942 299.123 32.8 -5.6 -6.5

Medical care

 386.606 388.202 388.040 3.3 0.4 0.0

Medical care commodities

 318.695 319.574 318.709 2.7 0.0 -0.3

Medical care services

 404.443 406.302 406.451 3.4 0.5 0.0

Professional services

 317.880 318.681 318.928 3.1 0.3 0.1

Recreation (3)

 116.074 115.904 116.027 2.5 0.0 0.1

Education and communication (3)

 125.985 126.702 128.371 5.1 1.9 1.3

Other goods and services

 367.991 373.338 373.378 5.3 1.5 0.0
Commodity and service group

Commodities

 185.240 185.942 184.282 8.0 -0.5 -0.9

Commodities less food and beverages

 164.272 164.297 161.346 9.5 -1.8 -1.8

Nondurables less food and beverages

 212.711 213.027 207.674 16.1 -2.4 -2.5

Durables

 110.055 109.797 109.305 -1.0 -0.7 -0.4

Services

 279.059 282.128 282.261 4.0 1.1 0.0
Special aggregate indexes

All items less medical care

 225.588 227.481 226.709 5.7 0.5 -0.3

All items less shelter

 214.783 216.295 215.519 7.4 0.3 -0.4

Commodities less food

 166.649 166.727 163.876 9.2 -1.7 -1.7

Nondurables

 216.311 217.499 215.290 10.7 -0.5 -1.0

Nondurables less food

 213.083 213.482 208.488 15.3 -2.2 -2.3

Services less rent of shelter (2)

 280.637 283.973 285.197 6.4 1.6 0.4

Services less medical care services

 269.849 272.946 273.077 4.0 1.2 0.0

Energy

 277.910 284.330 271.624 29.1 -2.3 -4.5

All items less energy

 229.918 231.345 231.869 3.1 0.8 0.2

All items less food and energy

 233.753 235.040 235.402 2.6 0.7 0.2

Footnotes:
(1) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator.
(2) Index is on a December 1982=100 base.
(3) Indexes on a December 1997=100 base.
(4) Special index based on a substantially smaller sample.
(5) Indexes on a December 1993=100 base.
- Data not available.
NOTE: Index applies to a month as a whole, not to any specific date.

 

Last Modified Date: September 16, 2008