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Consumer Price Index
Midwest Region
August 2008


The Consumer Price Index for the Midwest decreased 0.3 percent in August after registering increases in each of the previous seven months.  The index was up 5.4 percent from August 2007, the U.S. Department of Labor’s Bureau of Labor Statistics reported today.  According to Regional Commissioner Jay A. Mousa, energy prices, which include prices for motor and household fuels, were down 5.4 percent in August and accounted for nearly two-thirds of the overall monthly decline.  Energy prices have advanced 25.8 percent since August 2007.  The Midwest CPI for all items less energy was 0.4 percent higher over the month and was up 3.1 percent over the year. 

Among the eight major expenditure categories, lower transportation costs had the largest impact on the overall index in August 2008.  The transportation index decreased 2.6 percent over the month, largely attributable to a 7.0 percent decline in motor fuel costs.  Prices for new vehicles and for used cars and trucks also declined in August, down 0.6 and 0.3 percent, respectively.  Overall, transportation prices have risen 12.1 percent since August 2007 led by an over-the-year increase of 31.8 percent in motor fuel costs.  Prices for new vehicles were 0.8 percent lower and prices for used cars and trucks were down 0.7 percent.

Reflecting a downturn in costs for household energy, the housing index decreased 0.5 percent and also had a large downward impact on the overall monthly index for the Midwest.  The household fuels and utilities index registered a monthly decline of 2.7 percent in August primarily due to a 6.8 percent drop in utility (piped) gas service costs.  Shelter costs and prices for household furnishings and operations registered little or no movement over the month.  From August 2007 to August 2008, housing costs increased 3.5 percent in the Midwest.  Shelter costs rose 1.2 percent and prices for household fuels and utilities were up 17.1 percent.  Within fuels and utilities, electricity prices rose 5.5 percent over the year, and prices for utility (piped) gas service climbed 38.1 percent.  Prices for household furnishings and operations rose 2.0 percent over the 12-month period.

Partially countering the declines in costs for transportation and housing, prices for apparel and for food and beverages rose in August.  Apparel prices, which typically increase in August as retailers introduce fall merchandise, were up 3.8 percent.  Prices for apparel were up 5.4 percent from the previous year.

The food and beverages index rose 0.8 percent in August with prices for food at home up 1.0 percent and prices for food away from home 0.5 percent higher.  Prices for alcoholic beverages increased 0.3 percent over the month.  From August 2007 to August 2008, prices for food and beverages rose 6.4 percent.  Prices for food at home advanced 7.7 percent and prices for food away from home rose 5.5 percent.  Alcoholic beverages’ prices increased 2.9 percent over the year.

The remaining four major expenditure categories—education and communication, recreation, medical care, and other goods and services—had less impact on the overall monthly index.  The education and communication index rose 1.1 percent in August and 3.3 percent over the year.  Prices for recreation were up 0.6 percent for the month and were 3.5 percent higher than August 2007.  Medical care costs rose a modest 0.2 percent over the month and were up 2.4 percent over the year.  Other goods and services prices decreased 0.3 percent in August, but advanced 4.1 percent over the year

The Midwest Consumer Price Index for All Urban Consumers (CPI-U) stood at 209.351 in August.  A typical market basket of goods and services that cost $100.00 in the 1982-84 base period cost $209.35 in August 2008.  Because regional CPI data are not adjusted for seasonal price variation, consumers and businesses should be cautious in drawing conclusions about long-term retail price trends from short-term changes in the regional indexes.

 

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods
Midwest (1982-84=100 unless otherwise noted)
Item and Group

Indexes
Percent change from-
Jun.
2008
Jul.
2008
Aug.
2008
Aug.
2007
Jun.
2008
Jul.
2008

Expenditure category

 
 

All Items

208.968 210.071 209.351 5.4 0.2 -0.3

All items (1977=100)

340.002 341.797 340.625      

Food and beverages

206.221 208.290 209.866 6.4 1.8 0.8

Food

205.858 208.043 209.703 6.7 1.9 0.8

Food at home

202.476 204.951 207.019 7.7 2.2 1.0

Food away from home

211.450 213.251 214.363 5.5 1.4 0.5

Alcoholic beverages

210.030 210.747 211.343 2.9 0.6 0.3

Housing

199.967 201.325 200.243 3.5 0.1 -0.5

Shelter

225.317 225.325 225.008 1.2 -0.1 -0.1

Rent of primary residence (1)

214.994 215.119 215.500 2.0 0.2 0.2

Owners' equiv. rent (1) (2)

226.451 226.398 226.361 1.2 0.0 0.0

Fuels and utilities

228.371 237.361 230.905 17.1 1.1 -2.7

Household energy

207.300 216.521 209.653 19.0 1.1 -3.2

Gas (piped) and electricity (1)

213.057 223.044 215.964 18.3 1.4 -3.2

Electricity (1)

174.037 176.399 176.306 5.5 1.3 -0.1

Utility (piped) gas service (1)

281.714 306.581 285.769 38.1 1.4 -6.8

Household furnishings and operations

121.370 122.035 122.043 2.0 0.6 0.0

Apparel

108.815 106.538 110.610 5.4 1.6 3.8

Transportation

213.465 214.830 209.344 12.1 -1.9 -2.6

Private transportation

208.290 209.241 203.665 11.8 -2.2 -2.7

New and used motor vehicles (3)

94.380 94.381 94.811 0.6 0.5 0.5

New vehicles

130.287 130.011 129.273 -0.8 -0.8 -0.6

New cars and trucks (3) (4)

91.951 91.754 91.236 -0.7 -0.8 -0.6

New cars (4)

129.933 130.562 130.500 1.6 0.4 0.0

Used cars and trucks

137.290 137.169 136.807 -0.7 -0.4 -0.3

Motor fuel

353.460 356.561 331.509 31.8 -6.2 -7.0

Gasoline (all types)

351.629 354.832 329.824 31.8 -6.2 -7.0

Unleaded regular (4)

351.473 354.478 329.600 32.2 -6.2 -7.0

Unleaded midgrade (4) (5)

382.214 387.033 358.368 31.3 -6.2 -7.4

Unleaded premium (4)

340.032 342.794 319.999 30.3 -5.9 -6.6

Medical Care

360.549 360.652 361.277 2.4 0.2 0.2

Medical care commodities

289.459 288.927 290.348 -0.3 0.3 0.5

Medical care services

384.195 384.572 384.838 3.3 0.2 0.1

Professional services

329.522 329.555 329.199 3.0 -0.1 -0.1

Recreation (3)

114.233 114.669 115.353 3.5 1.0 0.6

Education and communication (3)

124.554 124.922 126.263 3.3 1.4 1.1

Other goods and services

334.655 336.042 334.948 4.1 0.1 -0.3
 

Commodity and Service Group

 
 

All Items

208.968 210.071 209.351 5.4 0.2 -0.3

Commodities

175.633 176.363 175.181 7.6 -0.3 -0.7

Commodities less food & beverages

158.890 159.028 156.687 8.2 -1.4 -1.5

Nondurables less food & beverages

208.950 209.180 204.675 13.8 -2.0 -2.2

Nondurables less food, beverages, and apparel

273.899 275.739 265.716 16.3 -3.0 -3.6

Durables

109.568 109.619 109.288 0.1 -0.3 -0.3

Services

243.720 245.216 244.983 3.9 0.5 -0.1

Rent of shelter (2)

231.660 231.661 231.331 1.2 -0.1 -0.1

Transportation services

250.895 253.715 256.221 6.7 2.1 1.0

Other services

287.099 287.999 290.333 3.8 1.1 0.8

Special aggregate indexes:

 
 

All items less medical care

201.500 202.637 201.867 5.7 0.2 -0.4

All items less food

209.416 210.336 209.215 5.2 -0.1 -0.5

All items less shelter

205.261 206.778 205.902 7.2 0.3 -0.4

Commodities less food

160.656 160.813 158.567 8.0 -1.3 -1.4

Nondurables

208.623 209.727 208.085 10.1 -0.3 -0.8

Nondurables less food

208.686 208.948 204.786 13.0 -1.9 -2.0

Nondurables less food and apparel

266.432 268.150 259.260 15.0 -2.7 -3.3

Services less rent of shelter (2)

270.866 274.186 274.054 6.7 1.2 0.0

Services less medical care services

232.557 234.102 233.842 4.0 0.6 -0.1

Energy

271.353 277.788 262.842 25.8 -3.1 -5.4

All items less energy

204.446 204.980 205.802 3.1 0.7 0.4

All items less food and energy

204.806 205.022 205.685 2.4 0.4 0.3

Commodities less food and energy commodities

138.049 137.820 138.621 1.8 0.4 0.6

Energy commodities

352.290 355.244 330.744 31.9 -6.1 -6.9

Services less energy services

248.437 248.977 249.519 2.7 0.4 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.

NOTE: Index applies to a month as a whole, not to any specific date. Data not seasonally adjusted.



Table 2. Consumer Price Index for All Urban Consumers (CPI-U): Selected areas, all items index
(1982-84=100 unless otherwise noted)
Area

All items
Indexes
Percent change to
Aug. 2008 from
Percent change to
Jul. 2008 from
May
2008
Jun.
2008
Jul.
2008
Aug.
2008
Aug.
2007
Jun.
2008
Jul.
2008
Jul.
2007
May
2008
Jun.
2008

U.S. City Average

216.632 218.815 219.964 219.086 5.4 0.1 -0.4 5.6 1.5 0.5
 

.............Region and area size (1)

 
 

Northeast urban

230.089 232.649 234.545 233.788 5.5 0.5 -0.3 5.7 1.9 0.8

Size A - More than 1,500,000

232.005 234.518 236.460 236.107 5.3 0.7 -0.1 5.5 1.9 0.8

Size B/C - 50,000 to 1,500,000 , (2)

136.913 138.542 139.623 138.537 6.1 0.0 -0.8 6.3 2.0 0.8
 

Midwest urban

207.168 208.968 210.071 209.351 5.4 0.2 -0.3 5.6 1.4 0.5

Size A - More than 1,500,000

208.291 209.813 211.003 210.341 5.3 0.3 -0.3 5.3 1.3 0.6

Size B/C - 50,000 to 1,500,000 , (2)

132.682 134.018 134.595 133.969 5.6 0.0 -0.5 5.9 1.4 0.4

Size D - Nonmetropolitan (less than 50,000)

202.720 205.122 206.435 206.251 5.9 0.6 -0.1 6.0 1.8 0.6
 

South urban

210.006 212.324 213.304 212.387 5.6 0.0 -0.4 5.8 1.6 0.5

Size A - More than 1,500,000

211.846 214.359 215.373 214.496 5.4 0.1 -0.4 5.6 1.7 0.5

Size B/C - 50,000 to 1,500,000 , (2)

133.714 134.980 135.643 135.004 5.6 0.0 -0.5 5.8 1.4 0.5

Size D - Nonmetropolitan (less than 50,000)

211.225 214.739 215.274 214.655 6.9 0.0 -0.3 6.8 1.9 0.2
 

West urban

221.009 223.040 223.867 222.823 4.9 -0.1 -0.5 5.3 1.3 0.4

Size A - More than 1,500,000

224.704 226.767 227.562 226.541 5.0 -0.1 -0.4 5.4 1.3 0.4

Size B/C - 50,000 to 1,500,000 , (2)

134.023 135.283 136.021 135.207 4.9 -0.1 -0.6 5.4 1.5 0.5
 

....................Size classes

 
 

A (3)

197.898 199.840 200.941 200.278 5.2 0.2 -0.3 5.4 1.5 0.6

B/C (2)

133.997 135.330 136.055 135.315 5.5 0.0 -0.5 5.8 1.5 0.5

D

209.308 211.989 212.555 212.138 5.9 0.1 -0.2 5.8 1.6 0.3
 

.............Selected local areas (4)

 
 

Chicago-Gary-Kenosha, IL-IN-WI

214.932 215.738 217.459 215.971 4.9 0.1 -0.7 5.8 1.2 0.8

Los Angeles-Riverside-Orange County, CA

226.651 229.033 229.886 228.484 5.1 -0.2 -0.6 5.7 1.4 0.4

New York-Northern N.Y.-Long Island, NY-NJ-CT-PA

236.151 238.580 240.273 240.550 5.4 0.8 0.1 5.1 1.7 0.7
 

Boston-Brockton-Nashua, MA-NH-ME-CT (5)

235.344   241.258         6.3 2.5  

Cleveland-Akron, OH (5)

204.882   206.941         5.0 1.0  

Dallas-Fort Worth, TX (5)

202.357   206.413         6.2 2.0  

Washington-Baltimore, DC-MD-VA-WV (5) (6)

139.649   142.065         5.7 1.7  
 

Atlanta, GA (7)

  212.032   211.404 5.0 -0.3        

Detroit-Ann Arbor-Flint, MI (7)

  207.593   209.484 4.9 0.9        

Houston-Galveston-Brazoria, TX (7)

  193.567   192.723 4.9 -0.4        

Miami-Fort Lauderdale, FL (7)

  225.079   225.473 5.8 0.2        

Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD (7)

  228.408   228.337 4.4 0.0        

San Francisco-Oakland-San Jose, CA (7)

  225.181   225.411 4.2 0.1        

Seattle-Tacoma-Bremerton, WA (7)

  228.068   227.745 5.4 -0.1        

Footnotes
(1) Regions defined as the four Census regions.
(2) Indexes on a December 1996=100 base.
(3) Indexes on December 1986=100 base
(4) In addition, the following metropolitan areas are published semiannually and appear in Tables 34 and 39 of the January and July issues of the CPI Detailed Report: Anchorage, AK, Cincinnati-Hamilton, OH-KY-IN; Denver-Boulder-Greeley, CO; Honolulu, HI; Kansas City, MO-KS; Milwaukee-Racine, WI; Minneapolis-St. Paul, MN-WI; Phoenix-Mesa, AZ; Pittsburgh, PA; Portland-Salem, OR-WA; St. Louis, MO-IL; San Diego, CA; Tampa-St. Petersburg-Clearwater, FL.
(5) January, March, May, July, September, and November pricing schedule.
(6) Indexes on a November 1996=100 base.
- Data not available.
(7) February, April, June, August, October, and December.

NOTE: Local area indexes are byproducts of the national CPI program. Each local index has a smaller sample size than the the national index and is, therefore, subject to substantially more sampling and other measurement error. As a result, local area indexes show greater volatility than the national index, although their long-term trends are similar. Therefore, the Bureau of Labor Statistics strongly urges users to consider adopting the national average CPI for use in their escalator clauses.
NOTE: index applies to a month as a whole, not to any specific date.

 ###

Scheduled release date for the September 2008 CPI: Thursday, October 16, 2008

CPI HOTLINE SERVICE PROVIDES LATEST INDEXES 24 HOURS A DAY

The all items CPI-U and CPI-W for the U.S. City Average, the Midwest region, and the Chicago area are available to the public 24 hours a day, 7 days a week through the Bureau’s CPI Hotline service. This recorded message also provides percent changes from the prior period and from a year earlier, as well as the scheduled release date for the next CPI issuance. The Hotline number in Chicago is (312) 353-1880, menu option 2.

BRIEF EXPLANATION OF THE CPI

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 87 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 32 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. Prices are collected in 87 urban areas across the country from about 50,000 housing units and approximately 23,000 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. Prices of food, fuels, and a few other items are obtained every month in all 87 locations. Prices of most other commodities and services are collected every month in the three largest geographic areas and every other month in other areas. Prices of most goods and services are obtained by personal visits of the Bureau’s trained representatives.

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. Separate indexes are also published by size of city, by region of the country, for cross-classifications of regions and population-size classes, and for 27 local areas. Area indexes do not measure differences in the level of prices among cities; they only measure the average change in prices for each area since the base period.

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

 

Last Modified Date: September 16, 2008