Midwest Information Office

Internet: www.bls.gov/ro5/	FOR RELEASE:
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MEDIA CONTACT: Paul LaPorte	Friday, August 14, 2009
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CONSUMER PRICE INDEX CHICAGO-GARY-KENOSHA, ILL.-IND.-WIS. CMSA JULY 2009

The Chicago-Gary-Kenosha Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in July, according to the U.S. Department of Labor’s Bureau of Labor Statistics.  Over the past year, the all items index was down 3.0 percent.  In the previous annual period (July 2007-08), the Chicago area CPI-U rose 5.8 percent.  The July 2009 Chicago-Gary-Kenosha Consumer Price Index for All Urban Consumers (CPI-U) was 210.906 (1982-84=100).

Regional Commissioner Jay A. Mousa stated that offsetting price movement among major consumer expenditure categories resulted in no change in the Chicago area all items CPI-U.  The housing component increased as a result of higher utility (piped) gas service costs and the food and beverages component rose due to higher grocery food prices.  Lower gasoline prices led to a decline in the transportation component and apparel prices experienced their typical seasonal decline in July.  The components for recreation, other goods and services, education and communication, and medical care experienced little or no change from June to July.

The housing component rose 0.4 percent over the month due mostly to a 10.4 percent increase in the utility (piped) gas service index.  Electricity costs decreased 1.0 percent in July and costs for household furnishings and operations fell 0.7 percent.  Over the past 12 months, the Chicago area housing component was 4.3 percent lower.  Most of this annual decline was attributed to a 54.4 percent over-the-year drop in the utility (piped) gas service index.  Electricity costs were down 3.0 percent and costs for household furnishings and operations fell 1.5 percent from their year ago July levels.  In the previous annual period, July 2007-08, the housing component rose 4.9 percent as utility (piped) gas service costs were up 61.4 percent in that period.

The food and beverages component increased 0.3 percent over the month due to a 0.9 percent hike in the food at home index (grocery items).  The food away from home index (restaurant meals, vending and cafeteria purchases, for example) declined 0.2 percent and alcoholic beverage prices fell 0.8 percent from June.   Over the past 12 months, the food and beverages component rose 1.5 percent.  This follows a 5.0 percent increase in the previous one-year period.  Grocery food prices were down 0.8 percent from a year ago following a 4.6 percent gain in the 12-month period ending in July 2008.  The food away from home index gained 4.1 percent over the year and alcoholic beverage prices were up 2.2 percent in the past year.

Transportation costs fell 1.6 percent in July.  Gasoline prices declined 6.1 percent and were responsible for most of this decrease.  On an annual basis, transportation costs were down 15.2 percent, mostly due to a 37.2 percent drop in the cost of gasoline over the year.  In the previous annual period, July 2007-08, transportation costs rose 14.0 percent as gasoline prices rose 34.3 in that 12-month period.

Apparel costs fell 0.8 percent in July.  In the previous nine June-July periods (2000-08), the apparel component fell an average 3.5 percent.  Compared with a year ago, the apparel component was up 4.7 percent.  This follows a 4.2 percent decline for the year ended in July 2008.

The recreation component edged up 0.1 percent in July and was up 0.4 percent for the year.  In the previous annual period ended in July 2008, recreation costs rose 4.3 percent.  Medical care costs were unchanged from June-July; however, costs for medical care in the Chicago area were up 7.7 percent for the year.

The education and communication component edged down 0.2 percent from June and stood 4.0 percent higher on an annual basis.  The other goods and services component edged up 0.2 percent from June and was up 5.0 percent for the year.

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Scheduled release date for the August 2009 CPI: Wednesday, September 16, 2009

Chicago-Gary-Kenosha, Ill.-Ind.-Wis. Combined Metropolitan Statistical Area (CMSA) includes Cook, DeKalb, DuPage, Grundy, Kane, Kankakee, Kendall, Lake, McHenry, and Will Counties in Illinois; Lake and Porter Counties in Indiana; and Kenosha County in Wisconsin.

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: August 17, 2009