Internet: www.bls.gov/ro3/

 PLS – 4457
FOR RELEASE:
THURSDAY, OCTOBER 16, 2008
INFORMATION: Gerald Perrins
(215) 597-3282
MEDIA CONTACT:

Sheila Watkins
(215) 861-5600

Washington-Baltimore Consumer Price Index: September 2008 (PDF)

Retail prices in the Washington-Baltimore area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), were unchanged from July to September, following a 1.7-percent increase in the previous two-month period, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  Sheila Watkins, the Bureau’s regional commissioner, noted that lower prices for transportation, housing, and recreation were offset by higher prices for apparel, education and communication, food and beverages, other goods and services, and medical care.  (See chart A.)  The September level of 142.036 (November 1996 = 100) was 5.5 percent higher than in September 2007.  Over the same period, the core inflation rate, as measured by the all items less food and energy index, rose 3.5 percent.  (See table 1.)

Chart A.  2-month and 12-month percent changes ended September 2008 for the major categories of the CPI-U for the Washington-Baltimore area, not seasonally adjusted

Chart A. 2-month and 12-month percent changes ended September 2008 for the major categories of the CPI-U for the Washington-Baltimore area, not seasonally adjusted
chart data

The transportation index decreased for the first time in a year, falling 4.3 percent since July—the largest two-month decline since November 2006.  Gasoline prices, which dropped 10.2 percent, were largely responsible for the recent decrease.  Due to increases in five of the last six bimonthly periods, the gasoline index was up 33.8 percent over the year.  Since September 2007, the overall transportation index increased 12.2 percent.

The housing index declined 0.4 percent from July to September dominated by a 5.0-percent decrease in fuels and utilities prices, in particular utility (piped) gas service prices.  Following five bimonthly increases totaling 50.0 percent, utility gas service prices dropped 23.7 percent since July but were 14.4 percent higher since September 2007.  Electricity prices rose 1.4 percent over the last 2 months and 11.2 percent over the last 12 months.  The fuels and utilities index was 11.7 percent higher over the year.  The shelter index, which includes rent of primary residence, lodging away from home, owners' equivalent rent of primary residence, and tenants’ and household insurance, inched down 0.1 percent since July but was 4.4 percent higher than a year ago.  Household furnishings and operations prices rose 2.8 percent over the last two months and 1.7 percent over the year.  Since September 2007, the housing index advanced 5.0 percent.

Following four bimonthly periods of increases totaling 3.4 percent, the recreation index declined 1.2 percent from July to September.  Despite the recent decline, recreation prices increased 1.6 percent over the last 12 months.

The remaining indexes had higher prices from July to September.  The apparel index rose 8.8 percent since July.  The recent advance was smaller than the 11.3-percent average July-September increase for the previous five years.  Higher prices for a number of items including women’s suits and separates, women’s outerwear, men’s shirts and sweaters, and girls’ apparel led the increase.  Apparel prices were unchanged since September 2007. 

The education and communication index advanced 3.0 percent since July.  College tuition and fees were responsible for most of the increase.  Prices for education and communication were 3.1 percent above their September 2007 levels.

Food and beverages prices rose 1.5 percent since July, led by higher food at home prices.  The food at home index advanced 1.7 percent from July to September and was 6.4 percent higher than its year-ago level.  Price increases for limited service meals and snacks and food at employee sites and schools led the 1.3-percent two-month advance in food away from home prices; this index increased 5.1 percent over the year.  Prices for alcoholic beverages increased 1.4 percent since July and 2.2 percent since September 2007.  The overall food and beverages index was 5.4 percent higher over the last 12 months—the largest 12-month increase since May 2004.

The other goods and services index, which includes tobacco and smoking products, personal care products, personal care services, and miscellaneous personal services such as legal, funeral, and laundry and dry cleaning services, advanced 6.9 percent from July to September—the largest two-month increase since publication began in November 1996.  Over the year, the other goods and services index increased 4.6 percent. 

The medical care index inched up 0.1 percent since July after no change during the previous two-month period, and was 3.5 percent higher than a year ago.

The energy index, which reflects prices for gasoline and household fuels, fell 8.0 percent since July.  Lower prices for gasoline (-10.2 percent) and utility gas (-23.7 percent) were responsible for the recent decrease.  These decreases were partially offset by a 1.4-percent rise in electricity prices.  Over the year, energy prices were up 22.4 percent.

The CPI-U for the Washington-Baltimore area stood at 142.036 on the November 1996=100 reference base, which means that a market basket of goods and services that averaged $100.00 in November 1996 would have cost $142.04 in September. 

The Washington-Baltimore, D.C.-Md.-Va.-W.Va., Consolidated Metropolitan Statistical Area (CMSA) includes the District of Columbia; Baltimore City and the counties of Anne Arundel, Baltimore, Calvert, Carroll, Charles, Frederick, Harford, Howard, Montgomery, Prince George’s, Queen Anne’s, and Washington in Maryland; the cities of Alexandria, Fairfax, Falls Church, Fredericksburg, Manassas, and Manassas Park and the counties of Arlington, Clarke, Fairfax, Fauquier, King George, Loudoun, Prince William, Rappahannock, Spotsylvania, Stafford, and Warren in Virginia; and the counties of Berkeley and Jefferson in West Virginia.

The relative importance of a component of the CPI is its expenditure or value weight expressed as a percentage of all items within an area.  Relative importance ratios show approximately how the index population distributes expenditures when the value weights are collected and represent an estimate of how consumers would distribute their expenditures as prices change over time.  Relative importance ratios cannot be used as estimates of current spending patterns or as indicators of changing consumer expenditures in the intervals between weight revisions because consumption patterns are influenced by factors—including income, variations in climate, family size, and availability of new and different kinds of goods and services—other than price change. (See table A.)

 

Table A (2005-2006 weights). Relative importance of components in the Consumer Price Index: Washington-Baltimore area, December 2007
Item and group CPI-U
Expenditure category

All items

 100.000

Food and beverages

 13.939

Food

 12.815

Food at home

 6.611

Food away from home

 6.204

Alcoholic beverages

 1.124

Housing

 47.848

Shelter

 38.555

Rent of primary residence

 6.305

Owners' equivalent rent of primary residence

 29.263

Fuels and utilities

 5.174

Household energy

 4.522

Gas (piped) and electricity

 4.344

Electricity

 3.399

Utility (piped) gas service

 0.928

Household furnishings and operations

 4.127

Apparel

 3.741

Transportation

 13.912

Private transportation

 12.631

Motor fuel

 4.513

Gasoline

 4.487

Medical care

 4.934

Recreation

 5.229

Education and communication

 7.470

Other goods and services

 2.919
Commodity and service group

Commodities

 35.218

Commodities less food and beverages

 21.280

Non durables less food and beverages

 13.133

Durables

 8.146

Services

 64.781
Special aggregate indexes

All items less medical care

 95.065

All items less shelter

 61.444

Commodities less food

 22.404

Nondurables

 27.072

Nondurables less food

 14.257

Services less rent of shelter

 26.578

Services less medical care services

 61.021

Energy

 9.033

All items less energy

 90.968

All items less food and energy

 78.153
Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods, Washington-Baltimore, D.C.-Md.-Va.-W.Va. (December 1997=100 unless otherwise noted)
Expenditure category Indexes Percent change from-
July 2008 Aug. 2008 Sep. 2008 Sep. 2007 July 2008 Aug. 2008

All items (1)

 142.065 - 142.036 5.5 0.0 -

Food and beverages (1)

 137.361 - 139.410 5.4 1.5 -

Food (1)

 138.776 - 140.852 5.7 1.5 -

Food at home

 135.435 136.493 137.697 6.4 1.7 0.9

Food away from home (2)

 140.537 - 142.375 5.1 1.3 -

Alcoholic beverages (2)

 117.671 - 119.364 2.2 1.4 -

Housing (1)

 152.356 - 151.671 5.0 -0.4 -

Shelter

 154.443 154.922 154.309 4.4 -0.1 -0.4

Rent of primary residence (1) (3)

 161.580 163.865 164.570 5.6 1.9 0.4

Owners' equivalent rent of primary residence (3)

 151.593 152.509 153.206 4.2 1.1 0.5

Fuels and utilities

 208.234 - 197.859 11.7 -5.0 -

Household energy

 216.974 207.492 205.055 12.5 -5.5 -1.2

Gas (piped) and electricity (3)

208.032 199.209 197.297 11.1 -5.2 -1.0

Electricity (3)

194.806 193.141 197.484 11.2 1.4 2.2

Utility (piped) gas service (3)

 229.206 197.469 174.887 14.4 -23.7 -11.4

Household furnishings and operations

 99.921 - 102.681 1.7 2.8 -

Apparel (1)

 88.211 - 95.933 0.0 8.8 -

Transportation (1)

 149.143 - 142.709 12.2 -4.3 -

Private transportation

 148.926 - 142.637 12.0 -4.2 -

Motor fuel

 334.353 310.231 300.079 33.9 -10.3 -3.3

Gasoline (all types)

 334.141 310.047 299.959 33.8 -10.2 -3.3

Gasoline, unleaded regular (4)

 341.278 315.359 305.389 34.1 -10.5 -3.2

Gasoline, unleaded midgrade (4)

 328.480 306.819 296.617 34.2 -9.7 -3.3

Gasoline,unleaded premium (4)

 324.392 304.075 293.362 33.2 -9.6 -3.5

Medical care (1)

 140.749 - 140.865 3.5 0.1 -

Recreation

 118.810 - 117.400 1.6 -1.2 -

Education and communication

 127.499 - 131.330 3.1 3.0 -

Other goods and services (1)

 147.060 - 157.226 4.6 6.9 -
Commodity and service group            

Commodities

 127.538 - 127.401 6.9 -0.1 -

Commodities less food and beverages

 121.900 - 120.539 7.9 -1.1 -

Nondurables less food and beverages

 155.034 - 152.652 13.7 -1.5 -

Durables

 86.354 - 86.045 -1.3 -0.4 -

Services

 151.665 - 151.707 4.7 0.0 -
Special aggregate indexes            

All items less medical care (1)

 142.072 - 142.036 5.6 0.0 -

All items less shelter

 135.901 - 135.929 6.1 0.0 -

Commodities less food

 121.760 - 120.547 7.6 -1.0 -

Nondurables

 145.048 - 144.994 9.4 0.0 -

Nondurables less food

 151.827 - 149.818 12.7 -1.3 -

Services less rent of shelter

 149.359 - 149.582 5.3 0.1 -

Services less medical care services

 152.500 - 152.559 4.8 0.0 -

Energy (1)

 262.513 247.122 241.537 22.4 -8.0 -2.3

All items less energy

 133.562 - 134.845 3.8 1.0 -

All items less food and energy (1)

 133.585 - 134.750 3.5 0.9 -

Footnotes
1 For Washington-Baltimore, index is on a November 1996=100 base.
2 For Washington-Baltimore, index is on a November 1997=100 base.
3 This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator.
4 Special index based on a substantially smaller sample.
- Data not available.
NOTE: Index applies to a month as a whole, not to any specific date.

 

Last Modified Date: October 16, 2008