Northeast Region Consumer Price Index: April 2008 (PDF)

Retail prices in the Northeast region, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), rose 0.5 percent in April, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  Sheila Watkins, the Bureau’s regional commissioner, noted that while an increase in the transportation index led the way, seven of the eight major categories that comprise the CPI had higher prices in April; only the medical care index was lower since March.  (See chart A.)  The April level of 228.133 (1982-84=100) was 3.9 percent higher than a year ago.  Over the same period, the core inflation rate, as measured by the all items less food and energy index, rose 2.2 percent.  (See table 1.)

Chart A.  1-month and 12-month percent changes ended April 2008 for the major categories of the CPI-U for the Northeast region, not seasonally adjusted

Chart data

Dominated by higher gasoline prices, the transportation index rose 1.6 percent in April.  After rising 4.3 percent in March, gasoline prices advanced 5.3 percent in April.  Over the year, gasoline prices were 21.5 percent higher.  Moderating the recent advance in the transportation index were lower prices for used cars and trucks, which edged down 0.3 percent over the month but were 1.8 percent higher over the year.  The overall transportation index advanced 7.1 percent since April 2007.

Food and beverages prices rose 0.8 percent since last month, due largely to higher food at home prices.  After edging up 0.2 percent in March, food at home prices advanced 1.3 percent in April.  Over the year, food at home prices were 5.7 percent higher—the largest 12-month gain since December 1990.  Food away from home prices also increased in April, up 0.4 percent to a level 4.4 percent higher than last year.  After ten straight months of increases totaling 3.9 percent, prices for alcoholic beverages edged down 0.2 percent in April.  Since April 2007, the alcoholic beverages index increased 3.8 percent.  The overall food and beverages index was 5.0 percent higher than its year-ago level.

The housing index rose 0.2 percent in April, due entirely to higher fuel and utilities prices, which were up 2.0 percent over the month.  Utility (piped) gas service prices were up 2.4 percent in April and 5.7 percent over the year.  Electricity prices also rose, up 1.2 percent over the month and 3.0 percent over the year.  The fuels and utilities index advanced 11.6 percent since last year—the largest 12-month advance since August 2006.  Partially offsetting the one-month increase in the fuels and utilities index, were lower prices for shelter and for household furnishings and operations.  The shelter index, which includes rent of primary residence, lodging away from home, owners’ equivalent rent of primary residence, and tenants’ and household insurance, inched down 0.1 percent over the month but was 2.6 percent higher over the year.  Prices for household furnishings and operations, the third component of the housing index, were 0.2 percent lower over the month and 1.5 percent lower since April 2007.  The overall housing index advanced 3.3 percent from its year-ago level.

Recreation prices increased for the fourth consecutive month, up 1.9 percent since December and 0.7 percent over the month.  Recreation prices were 1.8 percent higher over the last 12 months.

Following a 2.2-percent increase in March, apparel prices rose 0.8 percent in April.  Despite the recent advances, apparel prices were 1.6 percent lower since last year—the 22nd consecutive month without an over-the-year increase.

The other goods and services index rose for the fourth consecutive month, up 1.6 percent since December and 0.3 percent since last month.  Over the year, the other goods and services index (which includes tobacco and smoking products, personal care products and services, and miscellaneous personal services such as legal, funeral, and laundry and dry cleaning services) was 2.7 percent higher.

The education and communication index inched up 0.1 percent in April and was 4.3 percent higher over the year.

Following nine months without a decrease, the medical care index inched down 0.1 percent in April.  Lower prices for medical care services (-0.1 percent) were nearly offset by higher prices for medical care commodities (0.1 percent).  These two components of the medical care index had over-the-year increases of 3.6 and 1.9 percent, respectively.  The overall medical care index increased 3.3 percent over the last 12 months.

The energy index, which reflects prices for gasoline and household fuels, rose 3.7 percent in April, due in large part to a 5.3-percent increase in gasoline prices.  Also contributing to the increase in the overall energy index were higher prices for utility (piped) gas service (2.4 percent) and electricity (1.2 percent).  Over the year, the energy index was 16.8 percent higher.

The Northeast region is comprised of Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

The relative importance of a component of the CPI is its expenditure or value weight expressed as a percentage of all items within an area.  Relative importance ratios show approximately how the index population distributes expenditures when the value weights are collected and represent an estimate of how consumers would distribute their expenditures as prices change over time.  Relative importance ratios cannot be used as estimates of current spending patterns or as indicators of changing consumer expenditures in the intervals between weight revisions because consumption patterns are influenced by factors—including income, variations in climate, family size, and availability of new and different kinds of goods and services—other than price change. (See table A.)

Last Modified Date: March 14, 2008