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Consumer Price Index for Energy and Food Detroit-Ann Arbor-Flint, MI CMSA September 2008

 

Energy costs in the Detroit-Ann Arbor-Flint metropolitan area declined 1.2 percent in September, according to a report issued today by the U.S. Department of Labor’s Bureau of Labor Statistics.  Over the past 12 months, Detroit area energy costs were up 18.7 percent.  In the previous 12-month period, September 2006-2007, energy prices in the Detroit area advanced 13.2 percent.

According to BLS Regional Commissioner Jay A. Mousa in Chicago, the September decrease in energy costs was primarily due to a 1.5 percent drop in prices at the gasoline pumps.  Over the past 12 months, gasoline prices were up 22.5 percent.  In the previous 12-month period, gasoline prices gained 29.6 percent.  The electricity index declined 0.3 percent and the index for utility (piped) gas service fell 0.5 percent in September.  Over the past 12 months, the electricity index was 5.4 percent higher and the utility (piped) gas service index was up 22.8 percent.

 
The cost of grocery food (food at home) rose 0.3 percent from August-September.  In the previous August-September period, grocery food costs increased 1.4 percent.  During the past year, grocery food costs increased 4.7 percent, more than the 3.1 percent gain in the previous annual period ended in September 2007.

 

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Scheduled release date for the October 2008 CPI: Wednesday, November 19, 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, and the Detroit 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 Detroit is (313) 226-7558. 

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: October 16, 2008