FOR FURTHER INFORMATION:                                                   FOR RELEASE:
Cheryl Abbot, Regional Economist                                           October 16, 2008
(214) 767-6970                                                
http://www.bls.gov/ro6/



                          CONSUMER PRICE INDEX FOR DALLAS-FORT WORTH
                                         SEPTEMBER 2008

                        Area Prices Decline During August and September


    Prices in Dallas-Fort Worth fell 0.3 percent during August and September, the Bureau of 
Labor Statistics of the U.S. Department of Labor reported today.  Regional Commissioner 
Stanley W. Suchman noted that the decline resulted from lower prices within the transportation
category.  During the year ended in September 2008, overall prices increased 5.7 percent,
slightly less than the July 12-month advance, but notably higher than the year-ago annual rise
of 1.5 percent.  These data are based on the Consumer Price Index for All Urban Consumers (CPI-U).

    

    The transportation index decreased 5.0 percent in August and September, the first 
decline in a year.  The cost of gasoline fell 9.9 percent during the latest two months, but 
prices were still 34.8 percent above September 2007.  The average price for a gallon of 
gasoline in the Dallas-Fort Worth area stood at $3.61 in September 2008.  Contributing 
nearly as much to the transportation category decline were lower prices for new and used 
motor vehicles, particularly new cars and trucks.  Despite the two-month decline in 
transportation costs, the index rose 11.5 percent over the year.

    A 0.5-percent rise in the housing index provided the largest offset to the 
transportation decrease in August and September.  The current two-month housing gain 
followed much larger increases of 2.3 percent in June and July and 2.0 percent in April and 
May.  The biggest factor in the latest housing gain was an increase of 1.3 percent in the 
shelter index as rent of a primary residence (renters' costs) advanced 1.1 percent and 
owners' equivalent rent (homeowners' costs) rose 0.9 percent.  The bimonthly rate of gain in 
the total shelter index was driven higher due to larger increases in charges for hotels and 
lodging while at school.  Countering a portion of the shelter advance, the index for fuels 
and utilities declined 2.9 percent during the period.  Prices for utility (piped) gas 
service fell 14.9 percent and electricity costs declined 1.6 percent.  On an annual basis, 
the total housing index rose 4.7 percent over the year led by an 11.7-percent increase in 
the cost of fuels and utilities.

    Among the major categories, the largest two-month rate of gain was registered for 
apparel costs which rose 4.1 percent during the period.  Sharp price advances often occur at 
this time of year as new fall and winter lines are introduced and the latest two-month 
movement compares to a 9.7-percent rise in August and September 2007.  Higher prices for 
women's apparel - particularly women's dresses and suits and separates, were the biggest 
factor in the current gain.  Despite the two-month increase in apparel prices, the index 
fell 1.2 percent over the year.

    As a result of its greater relative importance in the consumer budget, a 0.7-percent 
rise in food and beverage prices had nearly the same upward impact on overall prices as the 
larger apparel increase.  During August and September, costs for food at home (groceries) 
edged up 0.2 percent, but prices rose at a much faster rate for food away from home 
(restaurant meals) and alcoholic beverages, up 1.1 and 1.3 percent, respectively.  Over the 
year, the food and beverages index was up 6.3 percent.

    Primarily as a result of higher costs for school tuition and fees, the index for 
education and communication rose 2.0 percent in August and September - the largest gain 
since the same period one year ago.  During the 12 months ended in September 2008 the index 
increased 3.1 percent.

    Smaller but still notable advances were registered in two other major categories in 
August and September.  The recreation index registered a 1.8-percent increase during the 
latest two-month period with higher costs reported for pets and pet products, as well as 
cable and satellite television service.  Over the year, recreation prices rose 2.7 percent.  
Medical care costs advanced 1.3 percent in August and September, due in part to higher 
charges for hospital services.  During the last 12 months, the medical care index rose 3.9 
percent.

    Despite an increase in cigarette prices, the index for other goods and services was 
unchanged in the latest two-month period.  Over the year, costs for other goods and services 
rose 2.2 percent.

    The CPI-U for the Dallas-Fort Worth area stood at 205.883 on the 1982-84=100 reference 
base, meaning that a market basket of goods and services which averaged $100.00 in 1982-84 
would have cost local consumers $205.88 in September 2008.

    The Dallas-Fort Worth Consolidated Metropolitan Area (CMSA) includes Collin, Dallas, 
Denton, Ellis, Henderson, Hood, Hunt, Johnson, Kaufman, Parker, Rockwall, and Tarrant 
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 Dallas-Fort Worth October CPI for Energy, Food At Home, and Shelter 
will be released on November 19, 2008.

Last Modified Date: October 16, 2008