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FOR RELEASE: FEBRUARY 20, 2009

 

CONSUMER PRICE INDEX FOR ST. LOUIS, MO-IL

Prices increased 2.5 percent from the second half of 2007 to the second half of 2008

The Consumer Price Index for All Urban Consumers (CPI-U) for the St. Louis metropolitan area increased 2.5 percent from the second half of 2007 to the second half of 2008, with most of the increase occurring in the first half of the period, the Bureau of Labor Statistics reported today. According to Regional Commissioner Stanley W. Suchman, while costs in seven of the eight major expenditure categories were up over the year, over two-thirds of the increase in the overall index was attributable to rising costs for housing and food and beverages.

Among the eight major expenditure categories, rising housing costs had the largest impact on the overall index, increasing 2.4 percent due largely to a 1.7 percent rise in shelter costs. Within shelter, rent of primary residence increased 1.1 percent and owners' equivalent rent of primary residence rose 2.0 percent. Prices for household energy advanced 5.8 percent from the second half of 2007 to the second half of 2008. Electricity prices moderated, increasing 0.3 percent after rising 6.2 percent in the same period one year ago. Charges for utility (piped) gas service turned up 13.0 percent over the year after falling 6.0 percent from the second half of 2006 to the second half of 2007. Prices for household furnishings and operations rose 3.0 percent.

The food and beverages index had the second largest effect on the all items index as costs rose 5.1 percent from the second half of 2007 to the second half of 2008, the largest over-the-year increase since 1991. Prices for food at home climbed 6.6 percent and accounted for over three-fifths of the increase in the food and beverages index. Costs for food away from home increased 3.5 percent and alcoholic beverages prices were 3.1 percent higher.

The St. Louis metropolitan area also recorded higher prices in five other major expenditure categories. The index for education and communication rose 4.1 percent from the second half of 2007 to the second half of 2008. Recreation prices, which include admissions to movies, concerts, and sporting events, rose 3.3 percent. Prices for other goods and services, which include tobacco and smoking products and personal care items, increased 4.2 percent since the second half of 2007 and medical care costs were up 1.4 percent. Apparel prices rose 1.5 percent over the period following an 8.0-percent increase in the same period one year ago.

The transportation index was the only major expenditure category that did not record an increase in prices from the second half of 2007 to the second half of 2008. However, price increases in the first half of the year nearly offset decreases in the second half, resulting in a slight over the year decline of 0.3 percent that had little impact on the all items index. Motor fuel prices were up 6.4 percent over the year, but the rate of increase slowed from the previous gain of 14.1 percent from the second half of 2006 to the second half of 2007.

Energy prices, which include prices for motor fuel and household fuels, were up 6.1 percent over the year, with price declines in the last half of the year partially offsetting increases recorded in the first half. The special aggregate index for all items less energy rose 2.1 percent. Excluding the impact of food and energy prices the St. Louis CPI-U was up 1.5 percent from the second half of 2007 to the second half of 2008.

The St. Louis CPI-U stood at 199.122 for the second half of 2008. This means that a market basket of goods and services that cost $100.00 in 1982-84 cost $199.12 in the second half of 2008. Because metropolitan area CPI data are not adjusted for seasonal price variation, consumers and businesses should be cautious in drawing conclusions about long-term retail price trends from short-term changes in the metropolitan area indexes.

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