Midwest Information Office

Internet: www.bls.gov/ro5/	FOR RELEASE:
GENERAL INFORMATION: (312) 353-1880	8:30 A.M. ET
MEDIA CONTACT: Paul LaPorte	Friday, August 14, 2009
(312) 353-1138

CONSUMER PRICE INDEX FOR ENERGY AND FOOD DETROIT-ANN ARBOR-FLINT, MICH. CMSA JULY 2009

 

Energy prices in the Detroit-Ann Arbor-Flint metropolitan area declined 5.5 percent in July, according to the U.S. Department of Labor’s Bureau of Labor Statistics.  Over the past year, Detroit area energy costs were down 25.3 percent, turning around the 24.1 percent increase in the 12-month period ended in July 2008.

According to Regional Commissioner Jay A. Mousa in Chicago, the July decline in the energy index was due to lower costs for gasoline as prices at the pumps were down 10.7 percent over the month.  Among other energy related categories, electricity costs were unchanged and utility (piped) gas service costs were up 0.6 percent from June-July.

Over the past 12 months, gasoline prices were down 38.1 percent, in contrast to the 33.7 percent annual increase experienced from July 2007-08.  The utility (piped) gas service index was down 17.2 percent for the year after increasing 19.1 percent from July 2007 to July 2008. The electricity index rose 10.7 percent over the past 12 months, following a 4.0 percent gain in the prior 12-month period.

The food at home index (grocery food items) was 0.4 percent higher in July.  This increase compares with a similar gain of 0.6 percent in July 2008.  During the past year, the food at home index advanced 1.1 percent, not as much as the 3.8 percent annual increase noted in July 2008. 

 

 ###

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

Detroit-Ann Arbor-Flint, Mich. Combined Metropolitan Statistical Area (CMSA) includes Genesee, Lapeer, Lenawee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, and Wayne Counties in Michigan.

  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: August 17, 2009