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Thursday, November 17, 2016

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

Local prices increase 1.7 percent over the year

The Consumer Price Index for All Urban Consumers (CPI-U) in the Detroit-Ann Arbor-Flint area increased 0.2 percent from August to October, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the energy index rose 1.1 percent, while the food index declined 0.4 percent over the bi-monthly period. The index for all items less food and energy increased 0.2 percent from August to October. Among the indexes within the all items less food and energy category, prices were higher for shelter, apparel, and medical care. (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 1.7 percent. (See chart 1 and table A.) The energy index decreased 2.5 percent over the year, primarily due to declines in gasoline prices. The index for all items less food and energy rose 2.6 percent over the year. (See table 1.)

Food

Food prices decreased 0.4 percent from August to October following a 0.1-percent decrease over the previous bi-monthly period. Of the two components within the food index, prices for food at home (groceries) declined 0.6 percent, and prices for food away from home (restaurant, cafeteria, and vending purchases) were unchanged.

Over the year, food prices in the Detroit area decreased 0.2 percent. Both grocery prices and prices for food away from home decreased 0.2 percent over the year.

Energy

The energy index for Detroit rose 1.1 percent from August to October. Prices for gasoline, electricity, and utility (piped) gas service rose 1.7 percent, 0.6 percent and 0.2 percent, respectively, over the two-month period.

From October 2015 to October 2016, overall energy prices decreased 2.5 percent. Gasoline prices fell 6.7 percent, and utility (piped) gas service costs were 4.2 percent lower. In contrast, electricity costs rose 6.1 percent over the year.

All items less food and energy

The index for all items less food and energy increased 0.2 percent from August to October. Among the index’s components, prices were higher for shelter (1.2 percent), apparel (5.1 percent), and medical care (1.5 percent). The indexes for recreation (-5.0 percent) and new and used motor vehicles were lower over the two-month period.

Over the year, the index for all items less food and energy rose 2.6 percent. Among the index’s components, shelter (3.6 percent), medical care (5.2 percent), and recreation (4.1 percent) recorded increases.

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 1.2 2.3

August

1.2 1.5 -0.7 1.3 -1.0 1.0 0.6 -0.9 -0.1 1.7

October

0.5 2.4 -0.1 0.7 -0.1 1.0 0.1 -0.7 0.2 1.7

December

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

The December 2016 Consumer Price Index for Detroit is scheduled to be released on Wednesday, January 18, 2017.


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-
Aug.
2016
Sep.
2016
Oct.
2016
Oct.
2015
Aug.
2016
Sep.
2016

Expenditure category

 
 

All items

(R) 223.894 - 224.271 1.7 (R) 0.2 -

All items (1967=100)

(R) 665.505 - 666.628 - - -

Food and beverages

221.572 - 221.079 0.0 -0.2 -

Food

221.205 - 220.371 -0.2 -0.4 -

Food at home

211.745 212.084 210.381 -0.2 -0.6 -0.8

Food away from home

236.124 - 236.197 -0.2 0.0 -

Alcoholic beverages

220.350 - 224.875 2.7 2.1 -

Housing

205.981 - 208.073 3.2 1.0 -

Shelter

233.350 237.756 236.257 3.6 1.2 -0.6

Rent of primary residence (1)

240.984 241.216 241.424 3.2 0.2 0.1

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

231.122 231.705 231.929 2.9 0.3 0.1

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

231.122 231.705 231.929 2.9 0.3 0.1

Fuels and utilities

244.720 - 245.030 2.6 0.1 -

Household energy

189.521 189.493 190.659 1.4 0.6 0.6

Energy services (1)

194.502 194.308 195.461 2.2 0.5 0.6

Electricity (1)

234.403 234.819 235.917 6.1 0.6 0.5

Utility (piped) gas service (1)

139.832 138.998 140.138 -4.2 0.2 0.8

Household furnishings and operations

116.119 - 116.786 0.8 0.6 -

Apparel

116.193 - 122.082 -0.5 5.1 -

Transportation

228.414 - 227.855 -1.5 -0.2 -

Private transportation

227.219 - 227.355 -1.4 0.1 -

Motor fuel

201.697 204.176 205.218 -6.7 1.7 0.5

Gasoline (all types)

200.580 203.040 204.071 -6.7 1.7 0.5

Gasoline, unleaded regular (3)

200.971 203.076 204.320 -7.5 1.7 0.6

Gasoline, unleaded midgrade (3) (4)

240.657 244.396 244.829 -4.2 1.7 0.2

Gasoline, unleaded premium (3)

215.159 220.481 220.496 -2.6 2.5 0.0

Medical care

(R) 420.553 - 426.754 5.2 (R) 1.5 -

Recreation (5)

122.728 - 116.649 4.1 -5.0 -

Education and communication (5)

147.787 - 146.468 0.2 -0.9 -

Other goods and services

402.889 - 402.064 0.3 -0.2 -
 

Commodity and service group

 
 

All items

(R) 223.894 - 224.271 1.7 (R) 0.2 -

Commodities

(R) 172.574 - 173.185 -0.8 (R) 0.4 -

Commodities less food & beverages

(R) 147.223 - 148.298 -1.6 (R) 0.7 -

Nondurables less food & beverages

(R) 174.686 - 179.078 -0.4 (R) 2.5 -

Durables

114.665 - 112.865 -2.4 -1.6 -

Services

(R) 276.500 - 276.668 3.3 (R) 0.1 -
 

Special aggregate indexes

 
 

All items less medical care

215.972 - 216.078 1.4 0.0 -

All items less shelter

(R) 223.168 - 222.570 0.9 (R) -0.3 -

Commodities less food

(R) 149.920 - 151.094 -1.3 (R) 0.8 -

Nondurables

(R) 197.942 - 200.009 -0.1 (R) 1.0 -

Nondurables less food

(R) 177.655 - 182.065 0.0 (R) 2.5 -

Services less rent of shelter (2)

(R) 337.214 - 334.063 3.1 (R) -0.9 -

Services less medical care services

266.913 - 267.087 3.3 0.1 -

Energy

199.048 200.126 201.263 -2.5 1.1 0.6

All items less energy

(R) 229.141 - 229.332 2.1 (R) 0.1 -

All items less food and energy

(R) 231.160 - 231.538 2.6 (R) 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.
(R) Revised
 

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

 

Last Modified Date: Thursday, November 17, 2016