The Consumer Price Index for All Urban Consumers (CPI-U) in the Midwest registered little movement in January (up 0.1 percent), the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Charlene Peiffer noted that higher costs for shelter (0.4 percent) had the largest upward impact on the index while prices for motor fuel (-1.8 percent) registered the largest offsetting movement. The indexes for food and for all items less food and energy each rose 0.2 percent in January.

The CPI-U for the Midwest rose 1.3 percent from January 2012 to January 2013. Food prices were up 1.3 percent and the energy index, which includes motor fuel and household fuels, declined 2.7 percent. Excluding food and energy, the CPI-U increased 1.9 percent over the year. (See chart 1.)

Food

Food prices increased 0.2 percent in January. Higher costs for food at home and for food away from home, each up 0.2 percent, contributed to the monthly advance.

From January 2012 to January 2013, the index for food rose 1.3 percent. Rising costs for food away from home (3.0 percent) had the greatest impact, though higher prices for food at home (0.3 percent) also contributed.

Energy

The energy index for the Midwest decreased for the fourth consecutive month, down 0.6 percent in January. The decline was largely due to motor fuel prices which decreased 1.8 percent over the month. Costs for utility (piped) gas service were down 0.7 percent, while prices for electricity turned up 1.9 percent.

Energy costs declined 2.7 percent from January 2012 to January 2013. Motor fuel prices fell 4.1 percent and utility (piped) gas service costs were 2.4 percent lower than one year ago. Moderating the overall decline in energy costs, electricity prices rose 1.2 percent.

All items less food and energy

The index for all items less food and energy rose a modest 0.2 percent in January. Components registering higher prices over the month included shelter (0.4 percent), medical care (0.4 percent), recreation (0.5 percent), and education and communication (0.4 percent). The index for apparel, down 1.9 percent, was among those that declined and partially offset the increases.

The index for all items less food and energy was up 1.9 percent from January 2012 to January 2013. Higher costs for shelter (2.2 percent) and medical care (3.6 percent) led the advance.

The Midwest Consumer Price Index for All Urban Consumers (CPI-U) stood at 219.282 in January 2013. A typical market basket of goods and services that cost $100.00 in the 1982-84 base period cost $219.28 in January 2013. Because regional CPI data are not adjusted for seasonal price variation, consumers and businesses should be cautious in drawing conclusions about long-term retail price trends from short-term changes in the regional indexes.

Table A. Midwest Region CPI-U monthly and annual percent changes (not seasonally adjusted)

Month	2008		2009		2010		2011		2012		2013
	Monthly	Annual	Monthly	Annual	Monthly	Annual	Monthly	Annual	Monthly	Annual	Monthly	Annual
January	0.6	4.3	0.6	-0.3	0.5	2.9	0.5	1.9	0.6	2.8	0.1	1.3
February	0.2	3.8	0.3	-0.2	0.0	2.5	0.3	2.2	0.2	2.7
March	0.9	3.7	0.3	-0.8	0.4	2.6	0.9	2.7	1.0	2.8
April	0.8	4.0	0.2	-1.5	0.2	2.7	0.7	3.3	0.2	2.3
May	0.9	4.0	0.4	-1.9	0.1	2.4	0.6	3.8	-0.1	1.5
June	0.9	4.9	1.1	-1.7	0.0	1.2	0.0	3.9	-0.1	1.4
July	0.5	5.6	-0.3	-2.5	0.2	1.7	0.1	3.8	0.0	1.3
August	-0.3	5.4	0.4	-1.8	0.2	1.5	0.2	3.8	0.7	1.8
September	0.0	4.8	0.0	-1.7	0.1	1.6	0.2	3.9	0.3	1.9
October	-1.5	3.3	0.1	-0.2	0.0	1.5	-0.6	3.3	-0.3	2.2
November	-2.1	0.5	0.3	2.2	0.1	1.2	0.0	3.3	-0.4	1.8
December	-1.1	-0.3	-0.3	3.0	0.2	1.8	-0.2	2.8	-0.2	1.8

CPI-W

In January, the Midwest Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 215.240, unchanged over the month. The CPI-W increased 1.2 percent over the year.

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The February 2013 Consumer Price Index for the Midwest region is scheduled to be released on Friday, March 15, 2013.

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 approximately 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 Midwest region is comprised of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.