Midwest Information Office

Internet: www.bls.gov/ro5/	FOR RELEASE:
GENERAL INFORMATION: (312) 353-1880	7:30 A.M. CT
MEDIA CONTACT: Paul LaPorte	Friday, August 14, 2009
(312) 353-1138

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CONSUMER PRICE INDEX
MILWAUKEE-RACINE, WIS. CMSA
FIRST HALF 2009

Retail prices in the Milwaukee-Racine area were down 1.5 percent in the first half of 2009 compared with their levels in the second half of 2008, according to the U.S. Department of Labor’s Bureau of Labor Statistics. The first half 2009 Milwaukee-Racine all items Consumer Price Index for All Urban Consumers (CPI-U) was 200.999 (1982-84=100), representing a 0.5 percent decrease over the first half of 2008.  This decrease follows a 4.8 percent gain recorded in the pervious annual period.

Regional Commissioner Jay A. Mousa stated that the 1.5 percent decrease in the Milwaukee-Racine CPI-U during the first half of 2009 was primarily attributed to to lower costs for the energy related categories of gasoline and utility (piped) gas service.  These declines resulted in decreases in the components for transportaion and housing, respectively.  All other major consumer expenditure categories: apparel, other goods and services, recreation, education and communication, food and beverages, and medical care rose during the first half of 2009, but not enough to offset the declines.

The transportation component fell 11.7 percent during the first half of 2009. Gasoline prices were 30.8 percent lower during the first half and accounted for almost the entire decline in transportation costs.  Over the past year, transportation costs declined 13.8 percent in contrast to the 10.4 percent increase noted in the first half of 2007 to the first half of 2008 period.  Gasoline prices plunged 36.5 percent over the year following a gain of 24.6 percent in the previous annual period.

The housing component declined 0.9 percent in the first half of 2009 due to a 22.9 percent decreased in the utility (piped) gas service index.  Household furnishings and operations contributed to the housing component’s decline, falling 1.3 percent during the first half of 2009, but to lesser extent.  The heavily weighted shelter index increased 0.3 percent and the electricity index rose 1.8 percent, only partially offsetting the declines in the other housing sub components.  Overall housing costs in the Milwaukee-Racine area increased 0.2 percent from a year ago, after rising 3.5 percent during the previous annual period.  In the recent annual period, increased shelter costs (0.7 percent), electricity (6.4 percent), and  household furnishings and operations (2.5 percent) more than offset a 26.1 percent decline in the index for utility (piped) gas servcie. 

Apparel costs increased 0.3 percent during the first half of the year.  Typically the apparel component posts a decline or very modest increase during the first half of the year. Over the past year, apparel prices advanced 1.8 percent, less than the 5.0 percent increase recorded in the previous annual period.

The other goods and services component, which includes personal care products and tobacco and smoking products, posted a 5.7 percent gain during the first half of 2009.  Compared with a year ago, this component increased 7.5 percent, less than the 9.5 percent increase reported in the first half of 2007 to 2008 period.

The component for recreation gained 0.9 percent during the first six months of 2009 and was 1.5 percent higher than a year ago.  The education and communications component increased 0.9 percent during the first half of 2009. Over the past year, education and communication prices advanced 4.8 percent, almost triple the 1.7 percent increase recorded in each of the two annual periods.

The food and beverages component increased 0.4 percent during the first six months of 2009, less than the 1.8 percent gain noted in the first half of 2008.  The food at home index (grocery food items) declined 0.5 percent and the food away from home index (dining out) rose 1.2 percent.  The alcoholic beverages index increased 0.6 percent during the first half of 2009, less than the 1.3 percent rate recorded during the first half of 2008.  Over the past year, the overall cost of food and beverages in the Milwaukee area increased 3.7 percent.  Grocery food costs rose 3.6 percent compared with their first half 2008 levels and the cost of dining out was up 3.9 percent in this same annual period.  Alcoholic beverages prices increased 0.6 percent from their first half 2008 levels.

The medical care component advanced 4.5 percent during the first six months of 2009, higher than the 3.7 percent increase recorded in the first half of 2008.  Over the past year, overall medical care costs increased 5.2 percent.

 

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Milwaukee-Racine, Wis. Combined Metropolitan Statistical Area (CMSA) includes Milwaukee, Ozaukee, Racine, Washington, and Waukesha Counties 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