The Consumer Price Index for All Urban Consumers (CPI-U) in the Northeast region rose 0.5 percent in September, the U.S. Bureau of Labor Statistics reported today. Martin Kohli, the Bureau’s chief regional economist, noted that the one-month increase was almost entirely due to advances in the energy index and all items less food and energy index, up 3.4 and 0.2 percent, respectively. The food index was nearly unchanged since August, inching up 0.1 percent. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the impact of seasonal influences.)

Over the last 12 months, the CPI-U increased 1.7 percent, due mostly to an advance in the all items less food and energy component, also up 1.7 percent. (See chart 1 and table A.) The food index and the energy index also rose since September 2011, up 1.7 and 1.5 percent, respectively. (See table 1.)

Food

For the third consecutive month, the food index inched up 0.1 percent in September. Prices for food away from home also inched up 0.1 percent, while those for food at home were unchanged.

Over the year, the food index advanced 1.7 percent. Prices for the food away from home and food at home components were up 2.4 and 1.2 percent, respectively.

Energy

The energy index, which includes prices for household and transportation fuels, increased 3.4 percent in September. The recent one-month increase primarily reflected higher prices for gasoline, up 4.7 percent since August. Prices for electricity and utility (piped) gas service also rose over the month, up 1.6 and 1.1 percent, respectively.

Following five straight months of over-the-year decreases, energy prices increased 1.5 percent since September 2011, dominated by a 6.9-percent advance in gasoline prices. The utility (piped) gas service index posted its 23rd consecutive 12-month decrease, falling 10.1 percent since September 2011. Meanwhile, the electricity index recorded its 11th straight 12-month decline, down 3.3 percent over the year.

All items less food and energy

Due largely to a seasonal increase in apparel prices (3.7 percent), the index for all items less food and energy edged up 0.2 percent since August. Also contributing to the recent rise were advances in the indexes for owners’ equivalent rent of residences (0.2 percent) and education and communication (0.5 percent). Lower prices for new and used motor vehicles (-0.7 percent) helped to moderate the one-month increase in the all items less food and energy index.

The index for all items less food and energy rose 1.7 percent over the year. The 12-month advance was led by higher shelter prices, particularly those for owners’ equivalent rent of residences (1.9 percent each). Widespread price increases among other components, including medical care (3.9 percent), also contributed to the rise in the all items less food and energy index since September 2011.

The October 2012 Consumer Price Index for the Northeast region is scheduled to be released on November 15, 2012, at 8:30 a.m. (ET).

Table A. Northeast region CPI-U 1-month and 12-month percent changes, all items index (not seasonally adjusted)

Month	2007		2008		2009		2010		2011		2012
	Monthly	Annual	Monthly	Annual	Monthly	Annual	Monthly	Annual	Monthly	Annual	Monthly	Annual
January	0.3	2.3	0.4	3.9	0.2	0.5	0.4	3.0	0.4	1.6	0.4	2.9
February	0.4	2.4	0.4	4.0	0.6	0.7	0.0	2.5	0.5	2.0	0.4	2.8
March	0.8	2.6	0.8	3.9	0.2	0.2	0.3	2.6	0.8	2.5	0.5	2.5
April	0.5	2.2	0.5	3.9	0.2	-0.1	0.2	2.5	0.5	2.8	0.3	2.3
May	0.5	2.3	0.9	4.3	0.1	-0.8	0.2	2.6	0.5	3.2	-0.1	1.7
June	0.4	2.3	1.1	5.0	0.8	-1.2	-0.1	1.7	0.1	3.4	-0.2	1.5
July	0.2	2.0	0.8	5.7	0.1	-1.9	0.0	1.6	0.2	3.6	-0.1	1.1
August	-0.2	1.6	-0.3	5.5	0.3	-1.2	0.1	1.4	0.3	3.8	0.5	1.3
September	-0.1	2.4	-0.4	5.2	0.1	-0.7	-0.1	1.2	0.1	4.0	0.5	1.7
October	0.2	3.1	-0.9	4.0	0.0	0.2	0.3	1.5	-0.1	3.6
November	0.6	4.0	-1.6	1.7	0.2	2.0	0.2	1.5	-0.1	3.2
December	0.0	3.8	-0.9	0.7	-0.1	2.8	0.0	1.6	-0.3	2.9

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 26,000 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 Northeast region is comprised of Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

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