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Wednesday, January 20, 2016

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Consumer Price Index, Phoenix – Second Half 2015

Area prices were up 1.1 percent over the past six months, up 0.5 percent from a year ago

Prices in the Phoenix Area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased 1.1 percent in the second half of 2015, the U.S. Bureau of Labor Statistics reported today. (See table A.) Regional Commissioner Richard J. Holden noted that this latest six-month increase was influenced by higher prices for shelter and electricity. (Data in this report are not seasonally adjusted. Accordingly, six-month-to-six-month changes may reflect seasonal influences.)

Over the last 12 months, the CPI-U advanced 0.5 percent. (See chart 1.) Energy prices dropped 12.1 percent, largely the result of an decrease in the price of gasoline. The index for all items less food and energy rose 1.6 percent over the year.

 Chart 1. Over-the-year percent change in CPI-U, Phoenix, second half 2012 - second half 2015

Food

Food prices increased 0.9 percent in the second half of 2015. (See table 1.) Prices for food away from home increased 1.7 percent, and prices for food at home rose 0.3 percent for the same period.

Over the year, food prices rose 1.4 percent. Prices for food away from home advanced 3.4 percent, while prices for food at home were unchanged from a year ago.

Energy

The energy index increased 2.7 percent since the first half of 2015. The increase was mainly due to higher prices for electricity (9.1 percent). Prices for natural gas service fell 6.1 percent, and prices for gasoline decreased 2.3 percent in for the same period.

Energy prices dropped 12.1 percent over the year, largely due to lower prices for gasoline (-24.3 percent). Prices paid for natural gas service decreased 5.8 percent, but prices for electricity increased 2.1 percent during the past year.

All items less food and energy

The index for all items less food and energy rose 1.0 percent in the latest six-month period. Higher prices for shelter (2.1 percent) and other goods and services (2.1 percent) were partially offset by lower prices for apparel (-1.6 percent), education and communication (-0.9 percent), and medical care (-0.7 percent).

Over the year, the index for all items less food and energy rose 1.6 percent. Components contributing to the increase included shelter (3.7 percent) and recreation (2.1 percent). Partly offsetting the increases were price declines in household furnishings and operations (-2.4 percent) and education and communication (-1.3 percent).

Table A. Phoenix CPI-U semi-annual and annual percent changes (not seasonally adjusted)
Month 2010 2011 2012 2013 2014 2015
Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual

First Half

0.3 0.7 2.1 2.2 1.6 2.8 1.1 1.2 1.2 1.5 -0.7 -0.2

Second Half

0.1 0.4 1.2 3.3 0.1 1.7 0.2 1.3 0.5 1.8 1.1 0.5

The First Half of 2016 Consumer Price Index for the Phoenix-Mesa is scheduled to be released on 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/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 Phoenix-Mesa metropolitan area covered in this release consists of Maricopa and Pinal Counties in the State of Arizona.

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

Phoenix-Mesa, AZ (1982-84=100 unless otherwise noted)
Item and Group

 
Semiannual average indexes
 
Percent change to
2nd half 2015 from-
2nd half
2014
1st half
2015
2nd half
2015
2nd half
2014
1st half
2015

Expenditure category

 
 

All items

128.157 127.288 128.749 0.5 1.1

All items (1967=100)

- - - - -

Food and beverages

139.260 139.859 141.061 1.3 0.9

Food

140.422 141.126 142.393 1.4 0.9

Food at home

145.856 145.418 145.905 0.0 0.3

Food away from home

133.835 136.046 138.358 3.4 1.7

Alcoholic beverages

126.996 126.530 127.055 0.0 0.4

Housing

124.081 124.442 127.442 2.7 2.4

Shelter

122.357 124.314 126.905 3.7 2.1

Rent of primary residence

125.782 127.630 130.174 3.5 2.0

Owners' equiv. rent of residences (1)

121.741 123.623 126.514 3.9 2.3

Owners' equiv. rent of primary residence (1)

121.741 123.623 126.514 3.9 2.3

Fuels and utilities

166.408 161.474 169.931 2.1 5.2

Household energy

177.745 167.607 179.485 1.0 7.1

Energy services

177.462 167.474 179.474 1.1 7.2

Electricity

188.252 176.163 192.118 2.1 9.1

Utility (piped) gas service

122.254 122.663 115.200 -5.8 -6.1

Household furnishings and operations

102.751 98.753 100.249 -2.4 1.5

Apparel

135.143 135.734 133.609 -1.1 -1.6

Transportation

122.453 114.928 114.444 -6.5 -0.4

Private transportation

123.881 116.477 115.882 -6.5 -0.5

Motor fuel

259.792 201.311 196.534 -24.3 -2.4

Gasoline (all types)

259.552 201.142 196.558 -24.3 -2.3

Gasoline, unleaded regular (2)

263.679 202.685 197.441 -25.1 -2.6

Gasoline, unleaded midgrade (2) (3)

258.852 208.327 204.664 -20.9 -1.8

Gasoline, unleaded premium (2)

248.955 197.593 195.985 -21.3 -0.8

Medical care

162.016 164.620 163.405 0.9 -0.7

Recreation (4)

110.699 111.487 113.009 2.1 1.4

Education and communication (4)

122.316 121.799 120.695 -1.3 -0.9

Other goods and services

138.983 138.248 141.141 1.6 2.1
 

Commodity and service group

 
 

All Items

128.157 127.288 128.749 0.5 1.1

Commodities

122.303 118.704 118.771 -2.9 0.1

Commodities less food & beverages

113.486 107.866 107.380 -5.4 -0.5

Nondurables less food & beverages

148.461 137.502 136.695 -7.9 -0.6

Durables

83.572 82.364 82.144 -1.7 -0.3

Services

132.311 133.176 135.529 2.4 1.8
 

Special aggregate indexes

 
 

All items less medical care

126.176 125.110 126.723 0.4 1.3

All items less shelter

131.133 128.758 129.592 -1.2 0.6

Commodities less food

113.991 108.585 108.140 -5.1 -0.4

Nondurables

143.845 138.869 139.106 -3.3 0.2

Nondurables less food

146.650 136.595 135.903 -7.3 -0.5

Services less rent of shelter (1)

144.728 144.212 146.370 1.1 1.5

Services less medical care services

129.008 129.721 132.354 2.6 2.0

Energy

212.882 182.330 187.222 -12.1 2.7

All items less energy

123.386 124.077 125.340 1.6 1.0

All items less food and energy

120.693 121.380 122.639 1.6 1.0

Footnotes
(1) Index is on a December 1982=100 base.
(2) Special index based on a substantially smaller sample.
(3) Indexes on a December 1993=100 base.
(4) Indexes on a December 1997=100 base.
 

- Data not available.
 

 

Last Modified Date: Wednesday, January 20, 2016