FOR FURTHER INFORMATION:                                                   FOR RELEASE:
Cheryl Abbot, Regional Economist                                           August 14, 2008
(214) 767-6970
http://www.bls.gov/ro6/


                               JULY 2008 CONSUMER PRICE INDEXES
                            FOR ENERGY, FOOD AT HOME, AND SHELTER
                              HOUSTON-GALVESTON-BRAZORIA, TEXAS

     Energy prices rose 0.8 percent in the Houston-Galveston-Brazoria metropolitan area 
during July, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  
Regional Commissioner Stanley W. Suchman noted that this was the smallest monthly gain since 
February of this year.  Prices for food at home also rose during the month, up 1.8 percent, 
while shelter costs were little changed.  These data are based on the Consumer Price Index 
for All Urban Consumers (CPI-U).

     July's 0.8-percent increase in energy prices followed an 11.4-percent jump in June.  
The July advance was almost entirely the result of higher motor fuel prices.  Gasoline costs 
rose 1.3 percent during the month, but this still marked a sharp deceleration from earlier 
in the year.  In July, the average price for a gallon of gasoline in the Houston 
metropolitan area stood at $4.002.  Household energy costs were also subdued in July, 
registering no change during the month after jumping 19.5 percent in June.  Annual increases 
among the energy components were varied, but all were notably higher.  The cost of natural 
gas service climbed 52.7 percent over the year, gasoline advanced 37.7 percent, and 
electricity rose 9.4 percent.  Combined, these annual movements placed the total cost of 
energy 27.8 percent above July 2007.

     The index for food at home rose 1.8 percent in July after increasing 2.8 percent in 
June.  Higher prices were noted for a variety of foods, including fresh vegetables -- 
particularly lettuce, eggs, beef steaks, ground beef, bread, and milk.  Lower prices were 
registered for tomatoes, beef roasts, and selected cuts of pork.  The cost of grocery items 
rose 8.4 percent during the last 12 months, the largest annual rate of gain since the year 
ended in May 1994.  The Consumer Price Index (CPI-U) for food at home stood at 205.635 on 
the 1982-84=100 reference base, meaning that a typical basket of grocery items priced at 
$100.00 in 1982-84 would have cost Houston area consumers $205.64 last month.

     The shelter index was little changed in July, edging up 0.1 percent, following a 0.2-
percent rise in June.  Owners' equivalent rent (homeowners' costs) advanced 0.2 percent in 
July, but this was nearly balanced by a 0.1-percent dip in the index for rent of a primary 
residence (renters' costs).  During the last 12 months, homeowners' costs rose 3.8 percent 
and renters' costs increased 2.9 percent.  Total shelter costs were 3.3 percent above a year 
ago.

     The Houston-Galveston-Brazoria Consolidated Metropolitan Statistical Area (CMSA) 
includes Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller 
Counties.  Local area CPI indexes are by-products of the national CPI program.  Because each 
local area index is a small subset of the national index, the sample size is smaller and 
therefore 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.


Next Release Date:  The Houston-Galveston-Brazoria August CPI for All Items will be released
on September 16, 2008.

 

Last Modified Date: August 14, 2008