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BLS 08-77 FOR RELEASE: Tuesday, September 16, 2008

The Bureau of Labor Statistics of the U.S. Department of Labor reported today that the All Items Consumer Price Index (CPI) in the Los Angeles-Riverside-Orange County area decreased 0.6 percent in August, following a 0.4 percent increase for July. Lower index levels in four of the eight major expenditure categories led to an over-the-month decline in the all items index. The annual increase for the year ending August 2008 was 5.1 percent, compared to a 5.7 percent increase for the year ending July 2008. Regional Commissioner Richard J. Holden noted that rising prices for transportation and housing largely contributed to the 12-month gain. Since August 2007, the special all items less food and energy index advanced 2.8 percent. Local Consumer Price Index data are not seasonally adjusted.

Transportation prices in the Los Angeles area declined 3.8 percent in August. Between August 2007 and August 2008, however, the transportation index increased 13.3 percent. The transportation index comprises about 19 percent of the CPI all items index and accounted for the largest annual increase among the eight major CPI expenditure categories. Within transportation, gasoline prices declined 9.9 percent over the past month, but increased 42.5 percent over the past year.

The housing index, which accounts for about 46 percent of the Los Angeles area's all items index, edged down 0.2 percent in August, but advanced 3.1 percent compared to 12 months ago. Shelter, household fuels and utilities, and household furnishings and operations are all components of the housing index. Shelter increased 0.4 percent over the month, and advanced 3.1 percent over the year. Household fuels and utilities dropped 6.0 percent for the month, but advanced 8.0 percent since August 2007. Within household fuels and utilities, prices for the utility (piped) gas service index fell 19.6 percent and electricity prices decreased 0.8 percent during August. Since August 2007, the utility (piped) gas service index jumped 29.3 percent, while electricity prices decreased 2.3 percent. Prices for household furnishings and operations inched up 0.2 percent in August, but declined 0.9 percent from a year ago.

The Los Angeles area's food and beverages index, which accounts for approximately 13 percent of the Los Angeles all items index, grew 0.5 percent in August and increased 5.2 percent above last year's level. The food at home index, which measures grocery prices, advanced 0.9 percent in August and advanced 7.1 percent from a year ago. Food away from home prices were unchanged in August, yet advanced 3.4 percent compared to August 2007. Additionally, prices for alcoholic beverages increased 0.4 percent over the past month and rose 3.2 percent over the past year.

In August 2008, medical care prices edged up 0.2 percent and increased 3.5 percent since last year. Apparel prices jumped 4.1 percent in August. Compared to last year, apparel prices increased by 2.6 percent.

The Los Angeles area education and communication index grew 0.8 percent in August and advanced 4.0 percent compared to August 2007.

The remaining two major expenditure categories, the recreation and the other goods and services indexes declined 0.6 percent and 0.1 percent, respectively, in August. Over the past year, recreation prices were up 1.5 percent and other goods and services prices rose 3.3 percent.

The All Items Consumer Price Index for All Urban Consumers (CPI-U) in the Los Angeles-Riverside-Orange County Consolidated Metropolitan Statistical Area, stands at 228.484 (1982-84=100). This means a market basket of goods and services that cost $100.00 in 1982-84 would have cost $228.48 in August 2008.

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Last Modified Date: September 16, 2008