Internet Address: www.bls.gov/ro2/home.htm FOR RELEASE: Friday, August 14, 2009 Media Contact: Michael L. Dolfman,(212) 337-2500 Information: Martin Kohli,(646) 264-3620 NORTHEAST REGION CONSUMER PRICE INDEX: JULY 2009 Largest 12-Month Decrease in Over 41 Years Retail prices in the Northeast region, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), inched up 0.1 percent in July, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Michael L. Dolfman, the Bureau's regional commissioner, noted that increases in most major categories (led by housing and transportation) were nearly offset by lower prices for apparel and food and beverages. (See chart A.) The July level of 230.154 (1982-84 = 100) was 1.9 percent lower than in July 2008-the largest over-the-year decline since the inception of the index in December 1966. Over the same period, the core inflation rate, as measured by the all items less food and energy index, rose 1.7 percent. (See table 1.)The housing index increased 0.3 percent in July due entirely to a 0.5-percent rise in shelter prices. The shelter index, which includes rent of primary residence, lodging away from home, owners' equivalent rent of primary residence, and tenants' and household insurance, was 1.3 percent higher over the year. Moderating the rise in the overall housing index were lower prices for both household furnishings and operations and fuels and utilities. The household furnishings and operations index decreased 0.3 percent over the month but was 0.5 percent higher over the year. The fuels and utilities index inched down 0.1 percent since June, as both electricity and utility (piped) gas service prices decreased over the month. Over the year, electricity prices fell 2.7 percent and utility gas prices dropped 31.3 percent-the largest 12-month decrease since the inception of this index in December 1977. Since July 2008, fuels and utilities prices dropped 17.7 percent. The overall housing index declined 1.6 percent over the last 12 months. Due in part to higher prices for new vehicles, the transportation index rose 0.4 percent in July. The new vehicles index also rose 0.4 percent since June and was 0.5 percent higher over the year. Also contributing to the overall rise in the transportation index were higher prices for used cars and trucks, up 0.5 percent since June but down 7.9 percent over the year. Following five months of increases totaling 47.0 percent, gasoline prices fell 1.0 percent in July. Due to strong declines in the second half of 2008, gasoline prices were 36.1 percent below year-ago levels. The overall transportation index declined 12.4 percent over the last 12 months. Following a 0.1-percent decline in June, the education and communication index rose 0.5 percent in July. Due to 9 increases over the last 12 months, the education and communication index was 3.8 percent higher than last year. The other goods and services index advanced 0.4 percent in July. Over the year, the other goods and services index (which includes tobacco and smoking products, personal care products, personal care services, and miscellaneous personal services such as legal, funeral, and laundry and dry cleaning services) increased 5.9 percent. The medical care index edged up 0.2 percent in July, due to a 0.3- percent increase in medical care services prices. Over the last 12 months, the medical care services index was 2.1 percent higher. Medical care commodities prices inched down 0.1 percent since June but were 2.4 percent higher over the year. The medical care index rose 2.2 percent since July 2008. The recreation index inched up 0.1 percent in July to a level 3.2 percent higher than last year-the largest 12-month increase since June 2006. The remaining indexes had lower prices in July. Apparel prices decreased for the fourth consecutive month, down 8.8 percent since March and 3.8 percent since June. The recent one-month decrease followed normal seasonal patterns, similar to the 3.5-percent average decrease in July for the last five years. Over the year, apparel prices were nearly unchanged, down just 0.2 percent. Due to lower food at home prices, the food and beverages index declined 0.3 percent over the month. Food at home prices decreased for the sixth straight month, down 2.9 percent since January and 0.6 percent since June. Over the last 12 months, food at home prices were 0.3 percent lower. The food away from home index was unchanged in July, but was 3.2 percent higher than last year. Alcoholic beverages prices increased 0.2 percent since June and 3.1 percent since July 2008. The overall food and beverages index rose 1.4 percent from its year-ago level. Following an 8.4-percent jump in June, the energy index decreased 0.6 percent in July. The recent decline was led by lower gasoline prices (-1.0 percent). Also contributing to the decrease were lower electricity (-0.4 percent) and utility gas service prices (-0.7 percent). Over the year, energy prices were 28.5 percent lower-the largest 12-month decrease since the inception of the index in December 1977. The Northeast region is comprised of Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. NYLS - 7392 Labor - New York 08/14/09 The relative importance of a component of the CPI is its expenditure or value weight expressed as a percentage of all items within an area. Relative importance ratios show approximately how the index population distributes expenditures when the value weights are collected and represent an estimate of how consumers would distribute their expenditures as prices change over time. Relative importance ratios cannot be used as estimates of current spending patterns or as indicators of changing consumer expenditures in the intervals between weight revisions because consumption patterns are influenced by factors-including income, variations in climate, family size, and availability of new and different kinds of goods and services-other than price change. (See table A.) Table A (2005-2006 Weights). Relative importance of components in the Consumer Price Index, Northeast Region, December 2008 ---------------------------------------------------------------- Item and group CPI-U ---------------------------------------------------------------- Expenditure category All items............................................ 100.000 Food and beverages.................................. 15.794 Food............................................... 14.702 Food at home...................................... 8.174 Food away from home............................... 6.528 Alcoholic beverages............................... 1.093 Housing............................................. 44.880 Shelter............................................ 35.109 Rent of primary residence......................... 6.747 Owners' equivalent rent of primary residence...... 24.949 Fuels and utilities................................ 5.834 Household energy.................................. 5.137 Gas (piped) and electricity...................... 4.262 Electricity..................................... 2.758 Utility (piped) gas service..................... 1.504 Household furnishings and operations............... 3.937 Apparel............................................. 3.712 Transportation...................................... 14.128 Private transportation............................. 12.779 New and used vehicles............................. 6.150 New vehicles..................................... 3.963 Used cars and trucks............................. 1.205 Motor fuel......................................... 2.756 Gasoline (all types).............................. 2.624 Medical care........................................ 5.885 Medical care commodities........................... 1.498 Medical care services.............................. 4.387 Professional care services........................ 2.561 Recreation.......................................... 5.505 Education and communication......................... 6.700 Other goods and services............................ 3.395 Commodity and service group Commodities......................................... 37.438 Commodities less food and beverages................ 21.644 Nondurables less food and beverages............... 12.954 Durables.......................................... 8.690 Services............................................ 62.562 Special aggregate indexes All items less medical care......................... 94.115 All items less shelter.............................. 64.891 Commodities less food............................... 22.736 Nondurables......................................... 28.748 Nondurables less food............................... 14.046 Services less rent of shelter....................... 27.734 Services less medical care services................. 58.175 Energy.............................................. 7.893 All items less energy............................... 92.107 All items less food and energy..................... 77.405 ----------------------------------------------------------------- Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods Northeast (1982-84=100 unless otherwise noted) Indexes Percent change from- Item and Group May June July July May June 2009 2009 2009 2008 2009 2009 Expenditure category All items.................................... 228.136 229.930 230.154 -1.9 0.9 0.1 All items (December 1977=100) ............... 359.244 362.070 362.423 - - - Food and beverages.......................... 223.364 223.125 222.428 1.4 -.4 -.3 Food....................................... 222.862 222.573 221.789 1.3 -.5 -.4 Food at home.............................. 221.287 220.534 219.104 -.3 -1.0 -.6 Food away from home....................... 227.945 228.236 228.254 3.2 .1 .0 Alcoholic beverages........................ 228.890 229.338 229.833 3.1 .4 .2 Housing..................................... 242.200 243.764 244.611 -1.6 1.0 .3 Shelter.................................... 290.563 291.794 293.197 1.3 .9 .5 Rent of primary residence 1/.............. 283.074 283.196 283.326 2.9 .1 .0 Owners' equivalent rent of primary residence 1/ 2/ ...................... 300.754 300.841 301.881 2.7 .4 .3 Fuels and utilities........................ 204.506 210.294 210.123 -17.7 2.7 -.1 Household energy.......................... 189.016 195.370 194.622 -20.5 3.0 -.4 Gas (piped) and electricity 1/........... 196.033 202.388 201.481 -12.9 2.8 -.4 Electricity 1/.......................... 189.455 198.946 198.218 -2.7 4.6 -.4 Utility (piped) gas service 1/.......... 198.620 196.567 195.272 -31.3 -1.7 -.7 Household furnishings and operations....... 129.805 129.384 129.045 .5 -.6 -.3 Apparel..................................... 120.491 115.915 111.496 -.2 -7.5 -3.8 Transportation.............................. 176.041 182.714 183.430 -12.4 4.2 .4 Private transportation..................... 170.461 177.272 177.487 -12.7 4.1 .1 New and used motor vehicles 3/............ 93.019 92.900 93.556 .4 .6 .7 New vehicles............................. 135.293 134.775 135.272 .5 .0 .4 New cars and trucks 3/ 4/............... 93.759 93.397 93.739 .5 .0 .4 New cars 4/............................. 133.207 132.553 133.133 -.5 -.1 .4 Used cars and trucks..................... 127.677 129.172 129.842 -7.9 1.7 .5 Motor fuel................................ 188.335 217.435 215.513 -36.4 14.4 -.9 Gasoline (all types)..................... 187.816 217.258 215.160 -36.1 14.6 -1.0 Gasoline, unleaded regular 4/...... .... 187.927 218.015 215.701 -36.6 14.8 -1.1 Gasoline, unleaded midgrade 4/ 5/....... 192.342 221.564 219.923 -35.1 14.3 -.7 Gasoline, unleaded premium 4/........... 184.989 211.249 209.941 -34.4 13.5 -.6 Medical care................................ 395.546 395.801 396.678 2.2 .3 .2 Medical care commodities................... 326.579 327.796 327.377 2.4 .2 -.1 Medical care services...................... 413.572 413.401 414.815 2.1 .3 .3 Professional services..................... 322.821 322.791 322.954 1.3 .0 .1 Recreation 3/............................... 117.244 119.426 119.571 3.2 2.0 0.1 Education and communication 3/...,.......... 130.868 130.748 131.465 3.8 .5 .5 Other goods and services.................... 392.734 393.621 395.329 5.9 .7 .4 Commodity and service group All items.................................... 228.136 229.930 230.154 -1.9 .9 .1 Commodities................................. 173.854 175.618 174.675 -6.1 .5 -.5 Commodities less food and beverages........ 145.337 147.948 146.927 -10.6 1.1 -.7 Nondurables less food and beverages....... 177.031 182.404 180.328 -15.3 1.9 -1.1 Nondurables less food, beverages, and apparel.............................. 221.972 234.580 234.118 -19.5 5.5 -.2 Durables.................................. 108.198 108.013 108.062 -1.6 -.1 .0 Services.................................... 281.315 283.138 284.510 .8 1.1 .5 Rent of shelter 2/ ....,................... 303.944 305.220 306.697 1.3 .9 .5 Transportation services.................... 234.916 236.379 239.465 2.0 1.9 1.3 Other services............................. 323.608 326.357 327.647 3.6 1.2 .4 Special aggregate indexes All items less medical care.................. 220.639 222.474 222.674 -2.1 .9 .1 All items less food.......................... 229.359 231.518 231.918 -2.4 1.1 .2 All items less shelter....................... 206.892 208.929 208.698 -3.5 .9 -.1 Commodities less food........................ 148.441 150.997 150.018 -10.0 1.1 -.6 Nondurables.................................. 200.336 203.068 201.635 -7.3 .6 -.7 Nondurables less food........................ 179.933 185.018 183.092 -14.2 1.8 -1.0 Nondurables less food and apparel............ 220.754 232.091 231.725 -17.8 5.0 -.2 Services less rent of shelter 2/ ............ 280.781 283.429 284.805 .3 1.4 .5 Services less medical care services.......... 271.738 273.642 274.997 .8 1.2 .5 Energy....................................... 188.600 204.517 203.276 -28.5 7.8 -.6 All items less energy........................ 234.502 234.791 235.175 1.7 .3 .2 All items less food and energy.............. 238.078 238.483 239.102 1.7 .4 .3 Commodities less food and energy commodities............................ 145.298 144.200 143.298 1.1 -1.4 -.6 Energy commodities......................... 196.220 222.356 220.704 -38.0 12.5 -.7 Services less energy services.............. 289.791 291.171 292.767 1.9 1.0 .5 1/ This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator. 2/ Index is on a December 1982=100 base. 3/ Indexes on a December 1997=100 base. 4/ Special index based on a substantially smaller sample. 5/ Indexes on a December 1993=100 base. - Data not available.
Last Modified Date: August 14, 2009
