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16-1444-CHI
Friday, July 15, 2016

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Consumer Price Index, Minneapolis-St. Paul — First Half 2016

Local prices rose 1.5 percent over the year

The Consumer Price Index for All Urban Consumers (CPI-U) in the Minneapolis-St. Paul area rose 1.5 percent from the first half of 2015 to the first half of 2016, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the all items less food and energy index was 2.5 percent higher compared to its first half 2015 level as price increases were noted for several categories: shelter, medical care, and recreation. Food prices rose 0.8 percent over the year while the index for energy fell 8.5 percent. (See chart 1.)

Food

Food prices rose 0.8 percent from their first half 2015 levels. Within the food category, the index for food away from home (restaurant, cafeteria, and vending purchases) increased 3.1 percent over the year while prices for food at home (groceries) were 1.0 percent lower.

Energy

The energy index decreased 8.5 percent from the first half of 2015 to the first half of 2016. Within the energy category, the indexes for gasoline and utility (piped) gas service declined 15.1 percent and 12.7 percent, respectively, over the year. The index for electricity rose 5.9 percent compared to its first half 2015 level.

All items less food and energy

The all items less food and energy index increased 2.5 percent over the year. Among the index’s components, higher costs were recorded for shelter (4.0 percent), medical care (3.7 percent), and recreation (2.9 percent).

The second half 2016 Consumer Price Index for Minneapolis-St. Paul is scheduled to be released in January 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 Minneapolis-St. Paul, Minn.-Wis. metropolitan area covered in this release is comprised of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright Counties and Pierce and St. Croix Counties in 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.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes for semiannual averages and percent changes for selected periods

Minneapolis-St. Paul, MN-WI (1982-84=100 unless otherwise noted)
Item and Group

 
Semiannual average indexes
 
Percent change to
1st half 2016 from-
1st half
2015
2nd half
2015
1st half
2016
1st half
2015
2nd half
2015

Expenditure category

 
 

All items

229.374 231.760 232.777 1.5 0.4

All items (1967=100)

720.816 728.311 731.506 - -

Food and beverages

269.800 272.282 271.883 0.8 -0.1

Food

258.628 261.487 260.785 0.8 -0.3

Food at home

250.130 252.407 247.678 -1.0 -1.9

Food away from home

271.699 275.526 280.251 3.1 1.7

Alcoholic beverages

371.538 368.029 372.357 0.2 1.2

Housing

207.453 209.754 213.268 2.8 1.7

Shelter

238.532 242.483 248.079 4.0 2.3

Rent of primary residence (1)

241.790 245.933 250.312 3.5 1.8

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

248.032 252.307 258.224 4.1 2.3

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

248.032 252.307 258.224 4.1 2.3

Fuels and utilities

199.068 198.092 200.078 0.5 1.0

Household energy

181.137 177.839 178.871 -1.3 0.6

Energy services (1)

184.380 181.648 182.471 -1.0 0.5

Electricity (1)

237.679 243.625 251.636 5.9 3.3

Utility (piped) gas service (1)

139.447 128.061 121.781 -12.7 -4.9

Household furnishings and operations

122.957 121.526 119.599 -2.7 -1.6

Apparel

133.291 137.800 127.054 -4.7 -7.8

Transportation

196.981 198.554 191.730 -2.7 -3.4

Private transportation

179.202 181.630 175.422 -2.1 -3.4

Motor fuel

193.152 194.019 163.836 -15.2 -15.6

Gasoline (all types)

193.562 194.835 164.347 -15.1 -15.6

Gasoline, unleaded regular (3)

194.863 195.629 164.382 -15.6 -16.0

Gasoline, unleaded midgrade (3) (4)

197.470 199.182 171.425 -13.2 -13.9

Gasoline, unleaded premium (3)

232.817 237.912 204.187 -12.3 -14.2

Medical care

492.003 495.139 510.252 3.7 3.1

Recreation (5)

121.481 122.565 124.993 2.9 2.0

Education and communication (5)

136.597 138.004 138.192 1.2 0.1

Other goods and services

359.731 363.260 367.175 2.1 1.1
 

Commodity and service group

 
 

All Items

229.374 231.760 232.777 1.5 0.4

Commodities

184.388 185.166 180.860 -1.9 -2.3

Commodities less food & beverages

145.657 145.813 140.436 -3.6 -3.7

Nondurables less food & beverages

187.283 188.881 176.940 -5.5 -6.3

Durables

107.992 106.987 106.328 -1.5 -0.6

Services

268.972 272.786 278.725 3.6 2.2
 

Special aggregate indexes

 
 

All items less medical care

217.557 219.912 220.301 1.3 0.2

All items less shelter

226.501 228.203 227.236 0.3 -0.4

Commodities less food

153.762 153.839 148.547 -3.4 -3.4

Nondurables

226.432 228.443 221.450 -2.2 -3.1

Nondurables less food

199.726 201.109 189.720 -5.0 -5.7

Services less rent of shelter (2)

318.114 321.785 328.220 3.2 2.0

Services less medical care services

249.919 253.713 258.423 3.4 1.9

Energy

189.981 188.764 173.911 -8.5 -7.9

All items less energy

236.798 239.567 242.159 2.3 1.1

All items less food and energy

233.674 236.431 239.508 2.5 1.3

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.
 

 

Last Modified Date: Friday, July 15, 2016