Washington-Baltimore Consumer Price Index: March 2008 (PDF)

Retail prices in the Washington-Baltimore area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), rose 1.3 percent from January to March, following a 0.8-percent increase in the previous two-month period, 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 housing index was responsible for nearly half of the overall increase, seven of the eight major categories had higher prices over the last two months; only education and communication prices declined since January.  (See chart A.)  The March level of 138.090 (November 1996 = 100) was 4.7 percent higher than in March 2007.  (See table 1.)

Chart A.  2-month and 12-month percent changes ended March 2008 for the major categories of the CPI-U for the Washington-Baltimore area, not seasonally adjusted

Dominated by higher shelter prices, the housing index rose 1.3 percent from January to March.  The shelter index, which includes rent of primary residence, lodging away from home, owners’ equivalent rent of primary residence, and tenants’ and household insurance, increased 1.4 percent since January and 3.0 percent since March 2007.  Fuels and utilities prices rose 1.8 percent from January to March due to higher prices for both utility (piped) gas service (up 4.4 percent) and electricity (up 1.2 percent).  Over the year, the fuels and utilities index jumped 25.1 percent—the largest 12-month advance in this index since its inception in December 1997.  The household furnishings and operations index, the third component of housing, declined 0.5 percent over the last two months and 1.8 percent over the year.  Housing prices were 4.8 percent above their year-ago levels.

Led by higher prices for women’s suits and separates and women’s dresses, the apparel index rose 8.6 percent from January to March after falling 5.3 in the previous two-month period.  Due to declines in four of the last six bimonthly periods, the apparel index decreased 3.2 percent over the year.

The transportation index advanced 2.0 percent over the last two months due to higher prices for gasoline and airline fares.  The monthly gasoline index jumped 7.6 percent in March following a 2.0-percent decline in February, resulting in a 5.5-percent two-month increase.  Gasoline prices were 26.9 percent higher over the year.  Moderating the overall increase in the transportation index were lower prices for new vehicles.  Over the year, the overall transportation index rose 8.3 percent.

The food and beverages index increased 0.5 percent from January to March, due primarily to higher food at home prices, which rose 0.6 percent since January and 4.4 percent since March 2007.  Prices for alcoholic beverages (up 1.8 percent) and food away from home (up 0.1 percent) were also higher in March.  Over the year, prices for alcoholic beverages rose 1.9 percent and prices for food away from home increased 4.5 percent.  The overall food and beverages index advanced 4.2 percent over the last 12 months.

Recreation prices rose 1.1 percent over the last two months—the largest bimonthly increase since July 2006—led by higher prices for cable and satellite television and radio service, pets and pet products, and sports equipment.  Over the last 12 months, the recreation index edged up 0.3 percent.

The medical care index increased 0.7 percent since January.  Higher prices for prescription drugs dominated the two-month advance.  Over the year, the medical care index jumped 8.6 percent—the largest 12-month increase since the inception of the index in November 1996. 

The other goods and services index, which includes tobacco and smoking products, personal care products, personal care services, and miscellaneous personal services such as legal, funeral, and laundry and dry cleaning services, edged up 0.2 percent from January to March and was 4.4 percent higher over the year.

Education and communication was the only category to record lower prices from January to March.  The index fell 0.6 percent over the last two months after edging down 0.2 percent from November to January.  Over the year, the education and communication index rose 2.9 percent.

The energy index, which reflects prices for gasoline and household fuels, rose 3.8 percent over the last two months.  While higher gasoline prices were largely responsible for the recent advance, all components of the energy index increased over the last two months.  Since March 2007, energy prices were up 27.7 percent.

More than half of the two-month increase in the overall local index came from rising services prices, up 1.1 percent since January and 4.8 percent since March 2007.  Prices for commodities rose 1.6 percent over the last two months and were 4.4 percent higher over the year. 

The CPI-U for the Washington-Baltimore area stood at 138.090 on the November 1996=100 reference base, which means that a market basket of goods and services which averaged $100.00 in November 1996 would have cost $138.09 in March. 

The Washington-Baltimore, D.C.-Md.-Va.-W.Va., Consolidated Metropolitan Statistical Area (CMSA) includes the District of Columbia; Baltimore City and the counties of Anne Arundel, Baltimore, Calvert, Carroll, Charles, Frederick, Harford, Howard, Montgomery, Prince George’s, Queen Anne’s, and Washington in Maryland; the cities of Alexandria, Fairfax, Falls Church, Fredericksburg, Manassas, and Manassas Park and the counties of Arlington, Clarke, Fairfax, Fauquier, King George, Loudoun, Prince William, Rappahannock, Spotsylvania, Stafford, and Warren in Virginia; and the counties of Berkeley and Jefferson in West Virginia.

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: April 16 2008