Prices in the New York-Northern New Jersey-Long Island area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), edged down 0.2 percent in July, after inching down 0.1 percent in June, the U.S. Bureau of Labor Statistics reported today. Chief Regional Economist Martin Kohli attributed the decline to lower prices for energy, apparel, and non-food expenditures that were partially offset by an increase in the price of food. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect seasonal influences.)

For the year ended in July 2012, the CPI-U rose 1.1 percent, the smallest rate of increase since October 2009. (See chart 1. and table A. ) The smaller 12-month change was largely attributable to falling energy prices that tempered shelter and food increases. All items less food and energy rose 1.8 percent.

Food

The food index rose 0.2 percent, after dipping 0.3 percent in June. A 0.2-percent increase in prices for food at home and a 0.3-percent rise in prices for food away from home contributed to the upturn. Higher prices were reported for uncooked beef roasts and steaks, apples, and other fresh vegetables.

From July 2011 to July 2012, the food index rose 2.3 percent. At-home food prices increased 2.0 percent, and away-from-home food prices advanced 2.6 percent. (See table 1.)

Energy

The energy index recorded its third consecutive decline, dropping 0.7 percent in July. Prices for household energy services dropped 1.3 percent over the month. Lower charges for electricity (-2.5 percent) outweighed a 1.5-percent increase for natural gas. Prices for gasoline decreased 0.4 percent, following declines in May (-2.8 percent) and June (-6.2 percent).

For the 12 months ended in July, the energy index declined 6.5 percent, with energy services falling 8.1 percent and gasoline prices dropping 5.2 percent.

All items less food and energy

The index for all items less food and energy turned down 0.2 percent, following a string of six increases. Apparel prices, often down in July with seasonal sales, declined 1.2 percent. Prices for household furnishings and operations decreased 0.9 percent. Other items registering price declines were recreation (-0.3 percent, with lower prices reported for televisions), and new and leased vehicles. In contrast, medical care rose 0.3 percent, and residential rent and other goods and services each edged up 0.2 percent.

Over the year, the index for all items less food and energy rose 1.8 percent. Medical care prices climbed 5.5 percent, and apparel prices increased 3.6 percent. Residential rent rose 2.3 percent, and household furnishings and operations ticked down 0.1 percent.

CPI-W

In July, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 248.162, down 0.1 percent over the month. The CPI-W increased 1.2 percent over the year.

The August 2012 Consumer Price Index for New York-Northern New Jersey-Long Island is scheduled to be released on Friday, September 14, 2012 at 8:30 a.m. (EDT).

Technical note

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 88 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 29 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. Each month, prices are collected in 87 urban areas across the country from about 4,000 housing units and approximately 25,000 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.

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.

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. Because the sample size of a local area is smaller, the local area index is subject to substantially more sampling and other measurement error than the national index. In addition, local indexes are not adjusted for seasonal influences. As a result, local area indexes show greater volatility than the national index, although their long-term trends are quite similar. NOTE: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period.

The New York-Northern New Jersey-Long Island, N.Y.-N.J.-Conn.-Pa. consolidated area covered in this release is comprised of Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, and Westchester Counties in New York State; Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren Counties in New Jersey; Fairfield County and parts of Litchfield, Middlesex, and New Haven Counties in Connecticut; and Pike County in Pennsylvania.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; TDD message referral phone number: 800-877-8339.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods, New York-Northern N.J.-Long Island, NY-NJ-CT-PA (1982-84=100 unless otherwise noted)(not seasonally adjusted)

Item and Group	Indexes			Percent change from-
	May 2012	June 2012	July 2012	July 2011	May 2012	June 2012
Expenditure category
All items	252.652	252.406	252.016	1.1	-0.3	-0.2
All items (1967=100)	730.381	729.670	728.545
Food and beverages	243.844	243.277	243.866	2.2	0.0	0.2
Food	243.517	242.701	243.307	2.3	-0.1	0.2
Food at home	244.331	242.567	243.116	2.0	-0.5	0.2
Food away from home	248.953	249.357	250.052	2.6	0.4	0.3
Alcoholic beverages	244.667	247.595	247.947	2.2	1.3	0.1
Housing	264.114	265.684	265.403	0.4	0.5	-0.1
Shelter	323.014	324.138	324.246	1.3	0.4	0.0
Rent of primary residence (1)	327.492	328.237	328.979	2.3	0.5	0.2
Owners' equivalent rent of residences (1) (2)	329.997	330.829	331.195	1.4	0.4	0.1
Owners' equivalent rent of primary residence (1) (2)	329.833	330.658	331.019	1.4	0.4	0.1
Fuels and utilities	195.024	200.152	198.977	-6.4	2.0	-0.6
Household energy	191.373	196.937	195.096	-7.7	1.9	-0.9
Energy services (1)	174.320	183.582	181.160	-8.1	3.9	-1.3
Electricity (1)	180.866	192.570	187.778	-5.7	3.8	-2.5
Utility (piped) gas service (1)	155.968	160.089	162.456	-12.8	4.2	1.5
Household furnishings and operations	122.534	122.997	121.900	-0.1	-0.5	-0.9
Apparel	127.004	122.113	120.646	3.6	-5.0	-1.2
Transportation	230.196	227.460	226.001	-0.7	-1.8	-0.6
Private transportation	218.751	215.439	214.664	-1.0	-1.9	-0.4
Motor fuel	301.504	282.826	281.734	-5.1	-6.6	-0.4
Gasoline (all types)	300.472	281.804	280.808	-5.2	-6.5	-0.4
Gasoline, unleaded regular (3)	304.056	284.463	283.506	-5.6	-6.8	-0.3
Gasoline, unleaded midgrade (3) (4)	301.616	284.618	282.980	-4.5	-6.2	-0.6
Gasoline, unleaded premium (3)	293.312	277.064	276.488	-4.2	-5.7	-0.2
Medical care	412.765	412.349	413.555	5.5	0.2	0.3
Recreation (5)	118.206	118.824	118.500	2.2	0.2	-0.3
Education and communication (5)	138.761	138.652	138.508	2.0	-0.2	-0.1
Other goods and services	390.507	390.343	391.136	2.1	0.2	0.2
Commodity and service group
All items	252.652	252.406	252.016	1.1	-0.3	-0.2
Commodities	195.181	192.498	192.140	0.8	-1.6	-0.2
Commodities less food and beverages	162.036	158.456	157.654	-0.3	-2.7	-0.5
Nondurables less food and beverages	206.633	200.023	199.261	-0.2	-3.6	-0.4
Durables	105.364	105.307	104.498	-0.5	-0.8	-0.8
Services	301.952	303.785	303.369	1.4	0.5	-0.1
Special aggregate indexes
All items less medical care	245.542	245.304	244.860	0.9	-0.3	-0.2
All items less shelter	225.198	224.413	223.828	1.0	-0.6	-0.3
Commodities less food	165.527	162.133	161.363	-0.2	-2.5	-0.5
Nondurables	227.809	224.009	223.887	1.0	-1.7	-0.1
Nondurables less food	209.306	203.223	202.522	0.0	-3.2	-0.3
Services less rent of shelter (2)	289.485	292.174	291.154	1.4	0.6	-0.3
Services less medical care services	292.934	294.864	294.407	1.1	0.5	-0.2
Energy	236.536	232.521	230.964	-6.5	-2.4	-0.7
All items less energy	256.004	256.129	255.853	1.8	-0.1	-0.1
All items less food and energy	259.883	260.190	259.742	1.8	-0.1	-0.2
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) Index is on a December 1982=100 base. (3) Special index based on a substantially smaller sample. (4) Indexes on a December 1993=100 base. (5) Indexes on a December 1997=100 base.
NOTE: Index applies to a month as a whole, not to any specific date. The New York-Northern New Jersey-Long Island, NY-NJ-CT-PA consolidated area comprises the five boroughs of New York City, Nassau, Suffolk, Westchester, Rockland, Putnam, Dutchess, and Orange Counties in New York State; Bergen, Essex, Hudson, Hunterdon, Mercer, Monmouth, Middlesex, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren Counties in New Jersey; Fairfield County and parts of Litchfield, New Haven, and Middlesex Counties in Connecticut; and Pike County in Pennsylvania.