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15-299-SAN
Thursday, February 26, 2015

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Consumer Price Index, Los Angeles area – January 2015

Area prices were down 0.3 percent over the past month, down 0.1 percent from a year ago

Prices in the Los Angeles area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), decreased 0.3 percent in January, the U.S. Bureau of Labor Statistics reported today. (See table A.) Regional Commissioner Richard J. Holden noted that the January decrease was influenced by lower prices for gasoline and electricity. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect seasonal influences.)

Over the last 12 months, the CPI-U edged down 0.1 percent.  (See chart 1 and table A.) Energy prices dropped 19.8 percent, largely the result of a decrease in the price of gasoline. The index for all items less food and energy advanced 1.2 percent over the year. (See table 1.)

 Chart 1. Over-the-year percent change in CPI-U, Los Angeles, January 2011-January 2014

Food

Food prices advanced 0.2 percent for the month of January. (See table 1.) Prices for food at home increased 0.4 percent, while prices for food away from home were unchanged for the same period.

Over the year, food prices increased 3.7 percent. Prices for food at home moved up 4.0 percent since a year ago, and prices for food away from home advanced 3.2 percent.

Energy

The energy index decreased 7.6 percent over the month. The decrease was mainly due to lower prices for gasoline (-10.6 percent). Prices for natural gas service declined 5.8 percent, and prices for electricity declined 2.8 percent in for the same period.

Energy prices dropped 19.8 percent over the year, largely due to lower prices for gasoline (-30.9 percent). Prices paid for electricity advanced 0.6 percent, but prices for natural gas service declined 2.1 percent during the past year.

All items less food and energy

The index for all items less food and energy increased 0.2 percent in January. Higher prices for household furnishings and operations (0.9 percent) and apparel (0.9 percent) were partially offset by lower prices for education and communication (-0.6 percent).

Over the year, the index for all items less food and energy advanced 1.2 percent. Components contributing to the increase included shelter (3.1 percent) and other goods and services (1.4 percent). Partly offsetting the increases were price declines in household furnishings and operations (-3.3 percent) and recreation (-2.3 percent).

Table A. Los Angeles-Riverside-Orange County CPI-U monthly and annual percent changes (not seasonally adjusted)
Month 2010 2011 2012 2013 2014 2015
Monthly Annual Monthly Annual Monthly Annual Monthly Annual Monthly Annual Monthly Annual

January

0.4 1.8 0.9 1.8 0.8 2.1 0.8 2.0 0.5 0.8 -0.3 -0.1

February

0.0 1.4 0.5 2.3 0.5 2.1 0.7 2.2 0.5 0.5    

March

0.4 1.9 1.1 3.0 1.0 2.0 0.1 1.3 0.6 1.0    

April

0.2 1.9 0.5 3.3 0.0 1.5 -0.4 0.9 0.0 1.4    

May

0.2 1.8 0.0 3.1 0.1 1.6 0.1 1.0 0.4 1.7    

June

-0.2 0.9 -0.4 2.9 -0.4 1.6 -0.1 1.4 0.1 1.8    

July

0.1 0.9 -0.4 2.4 -0.1 1.9 -0.1 1.3 0.1 2.0    

August

0.2 0.8 0.2 2.4 0.6 2.3 0.1 0.8 -0.1 1.8    

September

-0.1 0.4 0.5 3.1 0.4 2.2 0.2 0.6 0.0 1.7    

October

0.3 0.7 0.0 2.8 0.8 3.0 0.1 -0.1 -0.1 1.4    

November

-0.4 0.7 -0.1 3.0 -1.0 2.1 -0.5 0.4 -0.7 1.3    

December

0.3 1.3 -0.5 2.2 -0.7 1.9 0.0 1.1 -0.5 0.7    

The February 2015 Consumer Price Index for the Los Angeles-Riverside-Orange County is scheduled to be released on March 24, 2015.


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 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 Los Angeles-Riverside-Orange County, CA. metropolitan area covered in this release is comprised of Los Angeles, Orange, Riverside, San Bernardino, and Ventura Counties in the State of California.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; Federal Relay Service: 1-800-877-8339.

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

Los Angeles-Riverside-Orange County, CA (1982-84=100 unless otherwise noted)
Item and Group

 
Indexes
 
Percent change from-
Nov.
2014
Dec.
2014
Jan.
2015
Jan.
2014
Nov.
2014
Dec.
2014

Expenditure category

 
 

All items

241.753 240.475 239.724 -0.1 -0.8 -0.3

All items (1967=100)

714.245 710.470 708.250 - - -

Food and beverages

247.926 248.373 248.959 3.5 0.4 0.2

Food

248.145 248.592 249.162 3.7 0.4 0.2

Food at home

258.307 259.048 260.007 4.0 0.7 0.4

Food away from home

231.745 231.812 231.880 3.2 0.1 0.0

Alcoholic beverages

230.363 230.784 231.529 1.2 0.5 0.3

Housing

262.727 263.089 263.629 2.4 0.3 0.2

Shelter

295.807 296.369 297.583 3.1 0.6 0.4

Rent of primary residence (1)

309.611 310.326 311.244 3.6 0.5 0.3

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

308.348 308.752 309.388 2.7 0.3 0.2

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

308.346 308.746 309.380 2.7 0.3 0.2

Fuels and utilities

300.072 303.089 296.410 1.9 -1.2 -2.2

Household energy

269.234 273.371 263.239 -0.3 -2.2 -3.7

Energy services (1)

267.786 272.074 262.078 -0.2 -2.1 -3.7

Electricity (1)

314.900 314.900 305.940 0.6 -2.8 -2.8

Utility (piped) gas service (1)

208.097 220.590 207.746 -2.1 -0.2 -5.8

Household furnishings and operations

116.528 115.178 116.202 -3.3 -0.3 0.9

Apparel

110.284 106.951 107.874 -0.8 -2.2 0.9

Transportation

197.339 189.984 184.091 -10.7 -6.7 -3.1

Private transportation

191.453 184.663 178.621 -11.1 -6.7 -3.3

Motor fuel

247.502 219.410 196.162 -30.9 -20.7 -10.6

Gasoline (all types)

241.999 214.466 191.752 -30.9 -20.8 -10.6

Gasoline, unleaded regular (3)

242.853 214.765 191.777 -31.2 -21.0 -10.7

Gasoline, unleaded midgrade (3) (4)

231.105 206.660 184.785 -29.5 -20.0 -10.6

Gasoline, unleaded premium (3)

229.091 204.481 184.240 -29.8 -19.6 -9.9

Medical care

421.072 424.437 424.232 0.3 0.8 0.0

Recreation (5)

103.032 102.267 102.217 -2.3 -0.8 0.0

Education and communication (5)

145.998 146.118 145.220 0.6 -0.5 -0.6

Other goods and services

381.349 382.251 382.703 1.4 0.4 0.1
 

Commodity and service group

 
 

All items

241.753 240.475 239.724 -0.1 -0.8 -0.3

Commodities

175.997 173.170 171.908 -3.4 -2.3 -0.7

Commodities less food & beverages

137.852 133.745 131.745 -8.4 -4.4 -1.5

Nondurables less food & beverages

180.289 172.279 167.072 -11.5 -7.3 -3.0

Durables

96.392 95.992 97.022 -2.8 0.7 1.1

Services

299.757 300.033 299.803 1.9 0.0 -0.1
 

Special aggregate indexes

 
 

All items less medical care

233.785 232.363 231.600 -0.1 -0.9 -0.3

All items less shelter

218.208 216.134 214.533 -1.9 -1.7 -0.7

Commodities less food

141.936 137.941 136.014 -7.9 -4.2 -1.4

Nondurables

215.235 211.115 208.578 -3.6 -3.1 -1.2

Nondurables less food

185.311 177.759 172.880 -10.5 -6.7 -2.7

Services less rent of shelter (2)

313.990 313.853 311.525 0.4 -0.8 -0.7

Services less medical care services

288.963 289.222 288.946 2.1 0.0 -0.1

Energy

256.803 240.905 222.571 -19.8 -13.3 -7.6

All items less energy

242.528 242.302 242.822 1.6 0.1 0.2

All items less food and energy

241.842 241.491 242.003 1.2 0.1 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.
 

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

 

Last Modified Date: Thursday, February 26, 2015