The Cleveland-Akron Consumer Price Index for All Urban Consumers (CPI-U) declined 0.3 percent from July to September, according to a report issued today by the U.S. Department of Labor’s Bureau of Labor Statistics.  The September all items CPI-U for the Cleveland-Akron area stood at 206.219 (1982-84=100), 4.7 percent higher than a year ago.  This increase follows a gain of 3.3 percent in the previous 12-month period.

Jay A. Mousa, regional commissioner for the Bureau in Chicago, stated that declines in the indexes for utility (piped) gas service and gasoline were the largest contributors to the two-month decline in the all items index.  These two items were largely responsible for two-month declines in the major categories for housing (down 1.7 percent) and transportation (down 3.3 percent).  Prices for food and beverages, apparel, recreation, and other goods and services rose over the month but only partially offset the aforementioned declines.  The components for medical care and education and communication were little changed from July to September.

A 1.7-percent drop in the housing component was the largest contributor to the bimonthly decline in the Cleveland-area all items index.  As stated above, a decline in the index for utility (piped) gas service was largely responsible for this drop.  Also contributing to the overall decline in housing costs was a 0.6-percent drop in shelter costs.  Prices for household furnishings and operations rose 3.2 percent since July, but only partially offset the drops in other categories.  Over the year, the housing component in the Cleveland area rose 2.6 percent with shelter costs falling 0.2 percent and the prices for household fuels and utilities increasing 14.9 percent.

The 3.3 percent bimonthly decline in the transportation component was primarily due to a 6.2-percent drop in gasoline prices.  Much like utility gas, the bimonthly decline in gasoline prices contrasted with a relatively large over-the-year increase.  Since September 2007, gasoline prices in the area have increased 30.6 percent.  Lower prices for new and used vehicles also contributed to the bimonthly decline in the transportation component.  Over the year, transportation costs in the Cleveland area were up 10.4 percent.

The apparel component increased 13.8 percent from July to September.  Higher prices for men’s shirts and sweaters and women’s footwear contributed to this increase.  An increase in the apparel component is typical between July and September; during the previous July-September period, apparel prices rose 24.6 percent.  Over the year, apparel prices in the Cleveland area were up 7.7 percent.  This was comparable to the 8.1 percent increase during the previous 12-month period but contrasts with the 13.3 percent decline from September 2005 to September 2006.

The food and beverages component increased 2.7 percent during the latest bimonthly period.  This increase was primarily attributable to a 4.7-percent rise in prices for food at home (groceries).  Higher prices for pork and nonalcoholic beverages contributed to this increase.  The food away from home index increased 0.4 percent from July to September.  Since September 2007, the food and beverages component in the Cleveland area has increased 6.4 percent with grocery prices rising 9.5 percent and the cost for food away from home increasing 3.5 percent.

 
The recreation component, which includes sporting goods, pet products, and televisions, increased 1.8 percent during this bimonthly period.  This component increased 0.9 percent in the same period last year.  On an annual basis, recreation costs increased 3.9 percent.  During the previous 12-month period, recreation prices rose 4.1 percent.

The other goods and services component, which includes tobacco products and funeral expenses, increased 0.3 percent from July to September.  Over the past year, this component increased 2.3 percent, identical to the 2.3-percent increase reported during the previous 12-month period.

Medical care costs in the Cleveland area edged up 0.1 percent from July to September.  Over the year, Cleveland-area medical care costs were 2.6 percent higher.  This contrasts with the previous 12-month period when medical costs rose 10.5 percent.

Prices for education and communication experienced little change, increasing 0.1 percent during the bimonthly period.  During the past 12 months, the component reported a 1.1-percent increase, slightly lower than the 1.5 percent gain during the previous one-year period.