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16-933-CHI
Tuesday, May 17, 2016

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Consumer Price Index, Detroit-Ann Arbor-Flint — April 2016

Local prices up 1.1 percent over the year

The Consumer Price Index for All Urban Consumers (CPI-U) in the Detroit-Ann Arbor-Flint area increased 1.4 percent from February to April, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the energy index increased 8.5 percent, and the food index rose 0.4 percent over the bi-monthly period. The index for all items less food and energy increased 0.9 percent from February to April. Among the indexes within the all items less food and energy category, prices were higher for shelter and education and communication. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the impact of seasonal influences.)

Over the past 12 months, the Detroit all items CPI-U increased 1.1 percent. (See chart 1 and table A.) The energy index decreased 6.1 percent over the year primarily due to declines in gasoline prices. The index for all items less food and energy rose 1.9 percent over the year. (See table 1.)

Food

Food prices rose 0.4 percent from February to April following a 0.8-percent increase over the previous bi-monthly period. Of the two components within the food index, prices for food away from home (restaurant, cafeteria, and vending purchases) increased 1.8 percent, while prices for food at home (groceries) declined 0.5 percent.

On an annual basis, food prices in the Detroit area increased 0.9 percent. Grocery prices were 0.7 percent higher, and prices for food away from home rose 1.3 percent over the year.

Energy

The energy index for Detroit increased 8.5 percent from February to April. Prices for gasoline rose 28.4 percent while prices fell for utility (piped) gas service (-5.5 percent) and electricity (-1.8 percent).

From April 2015 to April 2016, overall energy prices decreased 6.1 percent. Gasoline prices fell 13.0 percent, and utility (piped) gas service costs were 8.4 percent lower. In contrast, electricity costs rose 8.4 percent over the year.

All items less food and energy

The index for all items less food and energy increased 0.9 percent from February to April. Among the index’s components, prices were higher for shelter (1.5 percent) and education and communication (2.3 percent).

Over the year, the index for all items less food and energy rose 1.9 percent. Among the index’s components, shelter (3.1 percent), recreation (3.6 percent), and education and communication (2.8 percent) recorded increases. The indexes for apparel and household furnishings and operations declined 6.5 percent and 4.4 percent, respectively.

Table A. Detroit CPI-U 2-month and 12-month percent changes, all items index, not seasonally adjusted
Month 2012 2013 2014 2015 2016
2-month 12-month 2-month 12-month 2-month 12-month 2-month 12-month 2-month 12-month

February

0.6 3.9 1.1 1.9 1.1 0.7 -0.7 -1.8 0.3 0.9

April

0.6 2.1 0.0 1.3 1.3 2.0 1.2 -1.9 1.4 1.1

June

-0.8 0.4 1.2 3.3 0.5 1.3 0.0 -2.4    

August

1.2 1.5 -0.7 1.3 -1.0 1.0 0.6 -0.9    

October

0.5 2.4 -0.1 0.7 -0.1 1.0 0.1 -0.7    

December

-0.7 1.4 -0.7 0.8 -1.8 -0.1 -1.2 -0.1    

The June 2016 Consumer Price Index for Detroit is scheduled to be released on Friday, July 15, 2016.


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 89 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 28 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 6,000 housing units and approximately 24,000 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/pdf/homch17.pdf.

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 Detroit-Ann Arbor-Flint, Mich. consolidated area covered in this release is comprised of Genesee, Lapeer, Lenawee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, and Wayne Counties in Michigan.

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.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods
Detroit-Ann Arbor-Flint, MI (1982-84=100 unless otherwise noted)
Item and Group

 
Indexes
 
Percent change from-
Feb.
2016
Mar.
2016
Apr.
2016
Apr.
2015
Feb.
2016
Mar.
2016

Expenditure category

 
 

All items

218.360 - 221.412 1.1 1.4 -

All items (1967=100)

649.056 - 658.127 - - -

Food and beverages

222.885 - 223.593 1.0 0.3 -

Food

222.476 - 223.387 0.9 0.4 -

Food at home

214.515 211.545 213.514 0.7 -0.5 0.9

Food away from home

234.834 - 238.998 1.3 1.8 -

Alcoholic beverages

222.243 - 219.957 1.1 -1.0 -

Housing

202.731 - 204.272 2.1 0.8 -

Shelter

229.489 230.323 232.827 3.1 1.5 1.1

Rent of primary residence (1)

237.795 237.533 237.883 3.9 0.0 0.1

Owners' equiv. rent of residences (1) (2)

227.745 228.209 228.689 3.5 0.4 0.2

Owners' equiv. rent of primary residence (1) (2)

227.745 228.209 228.689 3.5 0.4 0.2

Fuels and utilities

238.871 - 232.772 1.7 -2.6 -

Household energy

185.623 184.261 179.837 0.5 -3.1 -2.4

Energy services (1)

189.744 188.389 183.663 1.5 -3.2 -2.5

Electricity (1)

220.619 217.477 216.601 8.4 -1.8 -0.4

Utility (piped) gas service (1)

145.031 145.673 137.115 -8.4 -5.5 -5.9

Household furnishings and operations

116.432 - 116.840 -4.4 0.4 -

Apparel

113.281 - 108.905 -6.5 -3.9 -

Transportation

212.591 - 224.157 -2.6 5.4 -

Private transportation

211.013 - 221.657 -3.3 5.0 -

Motor fuel

144.478 172.811 185.230 -13.1 28.2 7.2

Gasoline (all types)

143.485 171.863 184.237 -13.0 28.4 7.2

Gasoline, unleaded regular (3)

142.014 172.102 184.352 -14.3 29.8 7.1

Gasoline, unleaded midgrade (3) (4)

179.234 206.324 221.458 -9.8 23.6 7.3

Gasoline, unleaded premium (3)

162.737 185.188 199.623 -5.6 22.7 7.8

Medical care

412.523 - 416.297 1.9 0.9 -

Recreation (5)

117.199 - 116.459 3.6 -0.6 -

Education and communication (5)

145.339 - 148.628 2.8 2.3 -

Other goods and services

402.325 - 401.908 3.3 -0.1 -
 

Commodity and service group

 
 

All items

218.360 - 221.412 1.1 1.4 -

Commodities

167.136 - 171.670 -1.6 2.7 -

Commodities less food & beverages

138.983 - 145.071 -3.5 4.4 -

Nondurables less food & beverages

158.017 - 167.662 -4.8 6.1 -

Durables

114.078 - 116.771 -1.5 2.4 -

Services

270.762 - 272.491 2.9 0.6 -
 

Special aggregate indexes

 
 

All items less medical care

210.522 - 213.558 1.0 1.4 -

All items less shelter

216.912 - 219.894 0.2 1.4 -

Commodities less food

141.916 - 147.806 -3.3 4.2 -

Nondurables

189.828 - 195.227 -1.7 2.8 -

Nondurables less food

161.974 - 170.981 -4.3 5.6 -

Services less rent of shelter (2)

328.993 - 328.821 2.6 -0.1 -

Services less medical care services

261.099 - 262.930 3.1 0.7 -

Energy

171.517 183.239 186.156 -6.1 8.5 1.6

All items less energy

225.838 - 227.716 1.8 0.8 -

All items less food and energy

227.013 - 229.073 1.9 0.9 -

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.
 

- Data not available.
NOTE: Index applies to a month as a whole, not to any specific date.
 

 

Last Modified Date: Tuesday, May 17, 2016