Consumer prices in the Chicago-Gary-Kenosha area increased 1.0 percent in March, the U.S. Department of Labor’s Bureau of Labor Statistics announced today. The Chicago area Consumer Price Index for All Urban Consumers (CPI-U) for March was 211.542 (1982-84=100). Over the past year, retail prices in the Chicago area were up 4.5 percent compared with a 2.5 percent gain for the 12-month period ending in March 2007.

Jay A. Mousa, regional commissioner for the Bureau in Chicago, said that increases in the components for housing, apparel, and transportation were the largest contributing factors to the 1.0 percent gain in the Chicago area all items index. The components for medical care, recreation, and other goods and services also rose but with lesser impact. Declines were noted in the components for food and beverages and education and communication.

The housing component increased 1.1 percent in March. The shelter index gained 0.7 percent and the household energy index jumped 5.5 percent. Within the household energy index, electricity costs edged up 0.2 percent and utility (piped) gas services costs climbed 10.6 percent over the month. The household furnishings and operations index was unchanged. The overall housing component was 3.2 percent higher than a year ago due to annual increases in the indexes for shelter (3.3 percent) and household energy (6.0 percent). Utility (piped) gas service costs gained 7.4 percent and electricity costs rose 3.5 percent over the year. For the year, the household furnishings and operations index was down 0.6 percent.

The transportation component gained 1.6 percent in March primarily due to a 6.0 percent jump in gasoline prices. The latest increase in gasoline prices follows a 2.1 percent decline in February and a 3.0 percent gain in January. Over the year, pump prices in the Chicago area were up 29.7 percent. This follows March-March increases of 2.8 percent in 2007, 19.7 percent in 2006, and 17.1 percent in 2005. Overall transportation costs were ahead 10.3 percent for the year. This compares with an average annual increase of 3.0 percent over the previous three years.

Apparel prices are typically higher in February and March as new spring merchandise replaces post-holiday sales items. This March was no exception with apparel prices jumping 6.0 percent, in-line with the 6.3 percent average March gains recorded in 2005-2007. On an annual basis, apparel prices were down 5.1 percent, a larger decline than the 2.4 percent fall in the previous 12-month period ending in March 2007.

The cost of medical care advanced 0.5 percent over the month. For the year, the medical care component was up 5.8 percent. This follows a March-March increase of 2.8 percent in 2007 and 4.5 percent in 2006.

The other goods and services component increased 0.6 percent in March. Over the year, this component was up 2.2 percent.

Recreation costs gained 0.4 percent during March due in-part to higher prices for cable and satellite television service and pets and pet products. For the year, recreation costs were 4.7 percent higher. This compares with a 1.8 percent decline during the prior year.

The food and beverages component slipped 0.2 percent during March. Prices for grocery food items (food at home) declined 0.5 percent while the cost of dining out (food away from home) gained 0.4 percent. Alcoholic beverage prices were 1.0 percent lower. Food and beverage prices were 4.1 percent higher than a year ago, with the index for food at home gaining 4.6 percent and the food away from home index gaining 3.4 percent. The costs of alcoholic beverages advanced 5.2 percent over the year.

The education and communication component declined 0.3 percent during March, but was 4.9 percent higher for the year. This latest 12-month increase compares with annual average gains of 1.9 percent during the previous three March-March periods.