Internet: www.bls.gov/ro5/	FOR RELEASE:
GENERAL INFORMATION: (312) 353-1880	8:30 A.M. ET
MEDIA CONTACT: Paul LaPorte	Wednesday, March 18, 2009
(312) 353-1138

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CONSUMER PRICE INDEX DETROIT-ANN ARBOR-FLINT, MI CMSA FEBRUARY 2009

The Detroit-Ann Arbor-Flint, MI Consumer Price Index for All Urban Consumers (CPI-U) increased 2.0 percent from December 2008 to February 2009, the U.S. Department of Labor’s Bureau of Labor Statistics reported today.  This was more than the 1.1 percent gain for the same two-month period a year ago.  On an annual basis, the Detroit area CPI-U fell 0.2 percent.  This follows a 2.2 percent increase in the previous 12-month period ended in February 2008.  The February 2009 Detroit-Ann Arbor-Flint, MI CPI-U was 201.913 (1982-84=100).

The 2.0 percent bimonthly increase in the Detroit area CPI-U was primarily attributed to increases in the components for housing and transportation, commented Jay A. Mousa, regional commissioner for the Bureau in Chicago.  The components for apparel, food and beverages, and medical care are also rose, but with little impact.  Costs for recreation, education and communication, and other goods and services reported little or no change from December.

 
The transportation component rose 6.3 percent during the bimonthly period.  This increase was largely attributable to a 14.0 percent rise in the gasoline index.  In spite of this recent increase, gasoline prices in the Detroit area were still 37.4 percent lower than in February 2008.  Transportation costs in general were 6.9 percent lower over the year.  This compares with a 6.5 percent gain in the 12-month period ended in February 2008.

The housing component rose 1.3 percent from December to February.  A 1.7 percent increase in the heavily-weighted shelter index was the primary contributor to this change.  Increases in the indexes for electricity (1.6 percent) and household furnishings and operations (1.9 percent) also contributed.  The index for utility (piped) gas service was down 5.0 percent from its December level, only partially offsetting the aforementioned increases.  On an annual basis, the housing component gained 0.5 percent, less than the 1.5 percent increase in the previous 12-month period.  Among housing subcategories, shelter costs fell 1.0 percent, prices for fuels and utilities were up 6.5 percent and costs for household furnishings and operations were up 3.3 percent over-the-year.

The food and beverages component rose 0.6 percent from December to February.  During the prior December-February period, this component rose only 0.1 percent.  Grocery food prices (food at home index) were little changed with a 0.1 percent increase while the food away from home index (restaurant, cafeteria, and vending purchases) rose 1.1 percent.  The cost of alcoholic beverages rose 1.3 percent. Over the past 12 months, the overall food and beverage component rose 4.5 percent.  Prices for food at home rose 4.2 percent while prices for food away from home were up 5.4 percent.  Alcoholic beverage prices were 2.4 percent higher over the year.

Apparel prices increased 6.8 percent from December, comparable to the 7.2 percent gain during the previous December-February period.  In spite of the latest two-month price increase, apparel prices were 1.6 percent lower than a year ago.  During the previous 12-month period, apparel prices fell 1.9 percent.

The recreation component did not change over the two months, comparable to the 0.1 percent increase during the same bimonthly period last year.  On an annual basis, recreation costs fell 0.5 percent after falling 2.8 percent from February 2007 to February 2008.

The cost of medical care rose 0.9 percent from December to February.  On an annual basis, the medical care component was 1.3 percent higher, a smaller gain than the 2.6 and 5.6 percent increases during the prior two 12-month periods.

The education and communication component edged up 0.1 percent during this bimonthly period, and increased 2.6 percent for the year.  This annual change compared to a 2.2 percent increase from February 2007 to February 2008.

 
The other goods and services component was little changed from December-February (-0.1 percent) and was down 0.3 percent from a year ago.  During the previous 12-month period, this component rose 1.6 percent.

 

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Scheduled release date for the March 2009 CPI: Wednesday, April 15, 2009

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: March 18, 2009