Internet: www.bls.gov/ro5/	FOR RELEASE:
GENERAL INFORMATION: (312) 353-1880	7:30 A.M. CT
MEDIA CONTACT: Paul LaPorte	Thursday, October 16, 2008
(312) 353-1138

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Consumer Price Index Chicago-Gary-Kenosha, IL-IN-WI CMSA September 2008

The Chicago-Gary-Kenosha Consumer Price Index (CPI-U) declined 0.2 percent in September, the U.S. Department of Labor’s Bureau of Labor Statistics reported today.  Over the past 12 months, retail prices in the Chicago area were up 4.4 percent.  The Chicago area (CPI-U) for September was 215.465 (1982-84=100).

 
Jay A. Mousa, regional commissioner for the bureau in Chicago, said that declines in the components for housing and transportation were responsible for the 0.2 percent decrease in the Chicago area all items CPI-U in September.  The components for apparel, medical care, and education and communication were higher in September, partially offsetting these declines.  Among the remaining consumer expenditure categories: other goods and services, food and beverages, and recreation recorded little or no change over the month.

The housing component was down 0.7 percent in September due to a 13.6 percent drop in the utility (pipe) gas service index and a 0.2 percent decline in the shelter index.  Increases in the electricity index (5.2 percent) and household furnishings and operations index (1.0 percent) partially offset these declines.  On an annual basis, the housing component was up 2.5 percent.  Most of this annual increase was the result of a 36.0 percent increase in the utility (pipe) gas service index.  Over-the-year increases in the electricity index (6.7 percent) and household furnishings and operations index (2.9 percent) also contributed. Shelter costs were unchanged over the year.

The transportation component fell 2.0 percent in September.  Gasoline prices were down 1.0 percent from August to September, but still stood 27.4 percent above their year ago levels.  Transportation costs in general were up 9.7 percent from a year ago, more than double the 4.1 percent increase in the previous 12-month period ended in September 2007.

Apparel prices rose 6.2 percent during September.  Higher price tags were noted on men’s and boys’ apparel and women’s dresses and outerwear.  Over the year, apparel prices were up 2.3 percent in the Chicago area.

The cost of medical care rose 0.6 percent during September and stood 2.2 percent higher than a year ago.  The latest annual gain compares with annual average increases of 5.0 percent over the previous four September-September periods.

The education and communication component rose 1.1 percent in September, in-line with the 1.0 percent average increase for this month in the previous five years.  This component increased 3.8 percent from a year ago.

 
The other goods and services component edged up 0.3 percent in September.  Over the year, this component increased 3.1 percent.

Food and beverage prices in the Chicago area were nearly unchanged, increasing only 0.1 percent in September. The food at home index (grocery food items) was unchanged, but the food away from home index was up 0.3 percent.  Alcoholic beverage prices were down 0.6 percent.  Over the past 12 months, food and beverage prices gained 6.5 percent.  The food at home index rose 7.0 percent while the food away from home index advanced 6.1 percent.  Alcoholic beverage prices were up 6.4 percent for the year.

Recreation costs were unchanged in September.  Over the year, recreation costs were up 2.4 percent following a 0.3 percent decline in the previous annual period.

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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, 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.

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Last Modified Date: October 16, 2008