Southwest Information Office

FOR FURTHER INFORMATION:                                                                        FOR RELEASE:
Cheryl Abbot, Regional Economist                                                                August 14, 2009
(972) 850-4800                                                
http://www.bls.gov/ro6/


                                 CONSUMER PRICE INDEX FOR THE SOUTH - JULY 2009

     The Consumer Price Index for All Urban Consumers (CPI-U) for the South decreased 0.3 percent in July to 
208.819 (1982-84=100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  Regional 
Commissioner Stanley W. Suchman noted that the decrease was predominantly due to lower prices for apparel, 
housing, and transportation.  The energy index decreased 1.9 percent over the month, while food costs edged 
down 0.2 percent.  The core inflation rate, as measured by the all items less food and energy index, inched 
down 0.1 percent during the month.

     Over the last 12 months, prices in the South decreased 2.1 percent, due largely to a sharp decline in 
transportation costs.  This was the fifth consecutive annual decrease in the all items index.  Energy costs in 
the region declined 27.3 percent, while food prices increased 1.0 percent since last July.  Over the same 
period, the core inflation rate was 1.8 percent.

     Among the major categories, the apparel index decreased 2.9 percent in July.  Apparel costs increased 0.9 
percent over the year.  
       
     The index for housing decreased 0.3 percent over the month.  The shelter index, which includes rent of 
primary residence, lodging away from home, owners’ equivalent rent of primary residence, and tenants’ and 
household insurance, edged down 0.2 percent since June.  The fuels and utilities index declined 0.6 percent in 
July, as electricity costs decreased 1.3 percent.  Moderating the decline in fuels and utilities prices, costs 
for utility (piped) gas service increased 2.2 percent since June.  Household furnishings and operations costs 
were unchanged over the month.  Since July 2008, the housing index was unchanged in the South as a decrease in 
the fuels and utilities index (-7.4 percent) was offset by increases in shelter (1.1 percent) and household 
furnishings and operations (2.2 percent).  The 12-month decline in the fuels and utilities index was largest 
annual decline since the index began in December 1978.

     The transportation index declined 0.6 percent in July, as a 2.9-percent decrease in motor fuel costs was 
partially offset by a 0.4-percent increase in new and used motor vehicles.  Over the year, transportation costs 
declined 15.5 percent, dominated by a 38.7-percent drop in motor fuel prices.
        
     The food and beverages index inched down 0.1 percent in July due to lower prices for both food at home 
(-0.3 percent) and food away from home (-0.1 percent).  Prices for alcoholic beverages increased 0.8 percent over 
the month.  Over the year, the food and beverages index advanced 1.2 percent, as prices for food away from home 
advanced 3.2 percent and costs for alcoholic beverages rose 3.6 percent.  Costs for food at home declined 0.7 
percent over the year; the largest 12-month decline in the food at home index since July 1992. 

     The other goods and services index (which includes tobacco and smoking products, personal care products 
and services, and miscellaneous personal goods) advanced 1.6 percent in July.  Over the year, the other goods 
and services index rose 10.1 percent; this was the largest 12-month increase since February 1999.
       
     Prices for education and communication rose 0.3 percent over the month; since July 2008, this index 
advanced 2.3 percent. Recreation prices edged up 0.2 percent in July and increased 2.0 percent over the year. 

     The index for medical care was unchanged in July, as higher costs for medical care services (0.2 percent) 
were offset by lower costs for medical care commodities (-0.4 percent).  Over the year, the medical care index 
advanced 2.5 percent, as prices increased for both medical care services (2.4 percent) and medical care 
commodities (2.9 percent).

Population size groups
     Over the month, consumer prices in the South rose 1.0 percent in both the largest metropolitan areas, 
those with 1.5 million or more residents (Size Class A), and in the mid-size areas, those with populations 
between 50,000 and 1.5 million (Size Class B/C).  Prices advanced 1.1 percent in the smallest areas, those with 
populations of less than 50,000 (Size Class D).  Over the past 12 months, consumer prices in the South 
decreased 1.4 percent in each of the three groups.

Next Release Date:  The South CPI for August will be released on September 16, 2009.


                                                Technical Note

     The Bureau of Labor Statistics (BLS) has updated the consumption expenditure weights in the Consumer Price 
Index for All Urban Consumers (CPI-U) and Consumer Price Index for Urban Wage Earners and Clerical Workers 
(CPI-W) to the 2005-06 period.  The updated expenditure weights for these indexes replace the 2003-2004 weights 
that were introduced effective with the January 2006 CPI release. As originally announced by BLS in December 
1998, CPI expenditure weights will continue to be updated at two year intervals.
       
     The CPI program completed its conversion to Computer Assisted Data Collection (CADC).  Due to the 
efficiencies gained from conversion to CADC, BLS has extended data collection to cover the entire month, 
beginning with data for January 2004.  CPI data collection is scheduled in terms of business days – weekdays 
excluding holidays.  Formerly, data collection covered three pricing periods, each comprising six business days 
in most months and five days in November and December.  Consequently, the last day of scheduled data collection 
was usually the 18th business day of the month.  This allowed time during the end of the month for the mailing 
of paper schedules back to the Washington Office and the data entry of the information in these schedules.  
Starting in January 2004, the three pricing periods now have variable lengths, between six and eight business 
days long.  The third pricing period normally will end on the last business day of the month.
       
     Local area CPI indexes are by-products of the national CPI program.  Because each local index is a small 
subset of the national index, it has a smaller sample size and is, therefore, subject to substantially more 
sampling and measurement error than the national index, although their long-term trends are quite similar.  The 
Bureau of Labor Statistics strongly urges users to consider adopting the national average CPI for use in 
escalator clauses.
       
     We encourage users interested in learning more about changes to the CPI to contact the Bureau of Labor 
Statistics.  Information on the Consumer Price Index and other surveys are available on our Web site at www.bls.gov.  
Current and historical BLS data are also posted on our Web site at www.bls.gov/ro6/home.htm.  If you have additional 
questions, you can contact the Dallas information office directly by dialing (972) 850-4800.  Information from the 
Consumer Price Index program is available to sensory impaired individuals upon request.  Voice phone: 202-691-5200, 
Federal Relay Services: 1-800-877-8339.



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1/ South includes Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, 
Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia.
===============================================================================================================

Consumer Price Index for All Urban Consumers and Urban Wage Earners and Clerical Workers, South Region,
(1982-84=100 unless otherwise noted) (not seasonally adjusted)

Item and group	All Urban Consumers (CPI-U)				Urban Wage Earners and Clerical Workers (CPI-W)
	Historical data	Index	Percent change from		Historical data	Index	Percent change from
		Jul. 2009	Jul. 2008	Jun. 2009		Jul. 2009	Jul. 2008	Jun. 2009
All items		208.819	-2.1	-0.3		205.415	-2.8	-0.3
All items (Dec. 1977 = 100)		338.734				332.693
Food and beverages		215.329	1.2	-0.1		213.955	1.1	-0.2
Food		215.811	1.0	-0.2		214.426	0.9	-0.2
Food at home		210.797	-0.7	-0.3		209.010	-0.9	-0.4
Food away from home		225.477	3.2	-0.1		224.643	3.4	0.0
Alcoholic beverages		207.571	3.6	0.8		206.558	4.3	0.7
Housing		203.183	0.0	-0.3		202.292	0.0	-0.3
Shelter		223.950	1.1	-0.2		222.417	1.4	-0.2
Rent of primary residence (1)		223.856	2.2	-0.1		222.617	2.0	-0.1
Owners' equivalent rent of primary residence (1) (2)		226.193	1.5	-0.2		210.527	1.4	-0.3
Fuels and utilities		218.230	-7.4	-0.6		219.318	-6.5	-0.6
Household energy		189.636	-10.0	-0.8		189.020	-8.9	-0.8
Gas (piped) and electricity (1)		191.254	-9.0	-0.8		191.214	-8.2	-0.8
Electricity (1)		188.848	-2.4	-1.3		187.162	-2.3	-1.1
Utility (piped) gas service (1)		191.873	-36.7	2.2		195.153	-36.7	2.2
Household furnishings and operations		130.226	2.2	0.0		124.754	1.9	-0.1
Apparel		128.136	0.9	-2.9		128.660	1.6	-2.7
Transportation		179.164	-15.5	-0.6		175.501	-17.2	-0.7
Private transportation		177.365	-15.7	-0.7		173.895	-17.4	-0.8
New and used motor vehicles (3)		93.497	-0.3	0.4		90.159	-2.3	0.5
New vehicles		140.975	2.2	0.3		140.787	2.2	0.3
New cars and trucks (3) (4)		95.892	2.2	0.3
New cars (4)		144.186	1.9	0.3
Used cars and trucks		124.244	-7.6	0.7		124.914	-7.6	0.7
Motor fuel		213.262	-38.7	-2.9		213.094	-38.7	-2.9
Gasoline (all types)		213.125	-38.2	-3.1		213.062	-38.2	-3.2
Gasoline, unleaded regular (4)		211.529	-38.9	-3.3		211.449	-38.9	-3.3
Gasoline, unleaded midgrade (4) (5)		223.572	-37.1	-2.8		223.482	-37.2	-2.9
Gasoline, unleaded premium (4)		213.459	-36.1	-2.5		213.110	-36.1	-2.6
Medical care		356.137	2.5	0.0		359.257	2.6	0.0
Medical care commodities		291.233	2.9	-0.4		284.293	2.9	-0.4
Medical care services		377.263	2.4	0.2		382.029	2.6	0.2
Professional services		316.231	2.5	0.3		317.622	2.5	0.3
Recreation (3)		115.877	2.0	0.2		112.353	2.0	0.1
Education and communication (3)		122.457	2.3	0.3		118.015	1.6	0.3
Other goods and services		366.799	10.1	1.6		389.400	13.4	2.1
Commodities		171.777	-5.9	-0.5		172.232	-7.4	-0.5
Services		246.705	0.8	-0.1		245.280	0.9	-0.1
All items less shelter		203.988	-3.5	-0.3		200.607	-4.6	-0.3
All items less medical care		200.266	-2.4	-0.3		197.794	-3.2	-0.3
Energy		195.128	-27.3	-1.9		195.607	-27.6	-1.9
All items less energy		211.002	1.7	-0.1		206.723	1.8	0.0
All items less food and energy		210.544	1.8	-0.1		205.318	1.9	0.0
South size A (more than 1,500,000)		211.034	-2.0	-0.2		208.492	-2.7	-0.2
South size B/C (50,000 to 1,500,000) (6)		132.736	-2.1	-0.2		131.063	-2.9	-0.2
South size D (nonmetropolitan, less than 50,000)		210.491	-2.2	-0.6		210.341	-3.0	-0.7
Footnotes (1) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator. (2) Indexes for CPI-U on December 1982=100 base; CPI-W on a December 1984=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. (6) Indexes on a December 1996=100 base.
South region includes the District of Columbia and the states of Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia.

 

Last Modified Date: August 14, 2009