Internet: www.bls.gov/ro5/	FOR RELEASE:
GENERAL INFORMATION: (312) 353-1880	7:30 A.M. CT
MEDIA CONTACT: Paul LaPorte	Wednesday, April 15, 2009
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CONSUMER PRICE INDEX MIDWEST REGION MARCH 2009

 

The Consumer Price Index for the Midwest rose for the third consecutive month, increasing 0.3 percent in March, the U.S. Department of Labor’s Bureau of Labor Statistics reported today.  According to Regional Commissioner Jay A. Mousa, over half of the change in the index was attributable to higher prices for apparel and other goods and services.  Despite March’s increase, the overall index was 0.8 percent lower than one year ago, the largest over-the-year decline since publication began in 1966.

Apparel prices had the largest impact on the overall index, rising 5.0 percent over the month following a 2.5 percent increase in February.  Apparel prices typically increase in March with the introduction of spring-summer wear, and have averaged an increase of 4.5 percent over the last five years.  Apparel prices were 0.3 percent higher than one year ago.

Prices for other goods and services had the second largest impact on the overall March index, accounting for about 20 percent of the change.  Upward movement in prices for tobacco and smoking products contributed to the 2.8 percent rise in prices for other goods and services, the largest over-the-month increase since December 1998.  From March 2008 to March 2009 costs for other goods and services rose 4.6 percent.

Four major expenditure categories each accounted for approximately 10 percent of the change in the overall index—housing, food and beverages, medical care, and transportation.  The housing index, which accounts for 40 percent of the all items index, was down a slight 0.1 percent.  Household energy prices fell for the eighth consecutive month and offset higher shelter costs in March.  The 2.1 percent decline in the household energy index reflected a 5.6 percent drop in prices for utility (piped) gas service and an increase of 0.2 percent in electricity prices.  Shelter costs were up 0.2 percent over the month.  Owners’ equivalent rent of primary residence rose 0.2 percent and rent of primary residence was unchanged.  Over the year, the housing index was up 0.2 percent.  Shelter costs were 0.3 percent higher.  Within shelter, rent of primary residence and owners’ equivalent rent of primary residence rose 2.5 and 1.0 percent, respectively.  Household energy prices were down 3.3 percent with prices for electricity up 8.3 percent since March 2008 while prices for utility (piped) gas service fell 15.5 percent.  Household furnishings and operations prices rose 2.4 percent over the year.

Lower prices for food at home pushed the index for food and beverages down 0.3 percent in March.  Prices for food at home were down 0.8 percent, while prices for alcoholic beverages were up 0.5 percent and costs for food away from home were little changed.  Despite the over-the-month decrease, food and beverages prices increased 4.7 percent over the year.  Costs for food at home rose 4.3 percent and prices for food away from home advanced 5.3 percent.  Alcoholic beverages’ prices were 4.0 percent higher than one year ago.

Costs for medical care rose 0.7 percent over the month.  Prices for medical care commodities rose 1.2 percent while prices for medical care services were 0.5 percent higher.  From March 2008 to March 2009, medical care costs advanced 3.1 percent.  Prices for medical care commodities and for medical care services were up 2.9 and 3.2 percent, respectively.

The transportation index increased 0.3 percent in March.  Motor fuel prices advanced 2.0 percent and prices for new vehicles rose 0.5 percent while used cars and trucks’ prices fell 1.7 percent.  Since March 2008, the transportation index recorded the only decline among the major expenditure categories, decreasing 13.1 percent—largely the result of a 39.3 percent drop in motor fuel costs.  Prices for new vehicles were 1.1 percent lower over the year and prices for used cars and trucks were down 11.7 percent.

The remaining two major expenditure categories—recreation and education and communication—together accounted for only about 3 percent of the movement in the monthly index.  Costs for recreation were up a slight 0.2 percent and education and communication prices were little changed over the month.  From March 2008 to March 2009 the indexes for recreation and for education and communication rose 1.8 and 3.1 percent, respectively.

Energy prices, which include prices for motor fuel and household fuels, were 0.3 percent lower over the month and 23.6 percent lower than in March 2008.  The special aggregate index for all items less energy rose 0.3 percent over the month and 1.9 percent since March 2008.  Excluding the impact of food and energy prices, the Midwest CPI was up 0.5 percent since February and 1.4 percent over the year.

The Midwest Consumer Price Index for All Urban Consumers (CPI-U) stood at 202.021 in March.  A typical market basket of goods and services that cost $100.00 in the 1982-84 base period cost $202.02 in March 2009.  Because regional 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 regional indexes.

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Scheduled release date for the April 2009 CPI: Friday, May 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, 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. 

 

Last Modified Date: April 15, 2009