Midwest Information Office

Internet: www.bls.gov/ro5/	FOR RELEASE:
GENERAL INFORMATION: (312) 353-1880	8:30 A.M. ET
MEDIA CONTACT: Paul LaPorte	Wednesday, July 15, 2009
(312) 353-1138

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CONSUMER PRICE INDEX DETROIT-ANN ARBOR-FLINT, MICH. CMSA JUNE 2009

 

The Detroit-Ann Arbor-Flint, MI Consumer Price Index for All Urban Consumers (CPI-U) increased 1.1 percent from April to June, the U.S. Department of Labor’s Bureau of Labor Statistics reported today.  This is the same as the 1.1 percent increase in the pervious April-June period.  Over the past 12 months, retail prices in the Detroit area were down 1.5 percent.  This marked a change from the previous 12-month period when prices rose 3.0 percent.  The June 2009 CPI-U for Detroit was 204.537 (1982-84=100).

Jay A. Mousa, regional commissioner for the Bureau in Chicago, stated that an increase in gasoline prices was the largest contributing factor in the latest bimonthly gain in the Detroit area all items CPI-U.  Increases in the components for housing and other goods and services also contributed to the bimonthly gain.  Partially offsetting these increases were declines in the categories of food, apparel, and medical care.  The recreation and education and communication components were little changed from April to June.

The transportation component increased 7.1 percent as gasoline prices rose 37.0 percent from April to June.  This most recent increase followed a sharp decline in gasoline prices from July 2008 to February 2009 (-52.8 percent).  Compared with last June, gasoline prices in the Detroit area were down 30.6 percent.  For the 12-month period ended in June 2009, transportation costs in general were down 9.7 percent.  During the previous 12-month period, transportation prices rose 11.0 percent.

The housing component in the Detroit area rose 0.5 percent from April-June.  This increase was almost entirely due to rising prices for fuels and utilities.  From April to June, costs for utility (piped) gas service rose 5.0 percent while electricity costs increased 4.3 percent.  Conversely, the heavily-weighted shelter index was almost unchanged, edging down 0.1 percent.  Prices for household furnishings and operations were down 0.3 percent from April to June.  Over the year, the housing component fell 1.1 percent with shelter costs declining 1.5 percent and costs for utility (piped) gas service dropping 14.1 percent.  In the previous 12-month period (June 2007-08), the housing component in the Detroit area rose 1.5 percent.

The other goods and services component rose 1.0 percent from April to June and over the past 12 months was 7.5 percent higher. During the prior annual period, the component rose 0.2 percent.

Recreation costs in the Detroit area were unchanged from April to June.  For the year, recreation costs were up 3.0 percent.  The education and communication component was little changed over the month, but was 2.2 percent higher than in June 2008.

Prices for food and beverages fell 0.5 percent from April to June.  The food at home index (grocery food items) fell 1.3 percent while the food away from home index (restaurant meals and vending machine purchases, for example) edged down 0.1 percent.  The cost of alcoholic beverages rose 2.5 from April to June.  Over the year, the food and beverages component gained 2.4 percent, with grocery costs increasing 1.3 percent and prices for food away from home rising 3.7 percent.

 
The medical care component declined 0.6 percent during this bimonthly period and was 0.7 percent higher than a year ago.  During the previous 12-month period, medical care costs in the area fell 0.7 percent.

The apparel component declined 7.0 percent during the bimonthly period, reflecting end-of-season sales on spring and summer merchandise.  This latest decline was greater than the 5.4 percent bimonthly drop reported for the same time period in 2008.  On an annual basis, the apparel component was down 0.9 percent. 

 

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Scheduled release date for the July 2009 CPI: Friday, August 14, 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