FOR FURTHER INFORMATION:                                     TRANSMISSION OF MATERIAL IN
Cheryl Abbot                                                 THIS RELEASE IS EMBARGOED
Regional Economist                                           UNTIL: 7:30 A.M. (CT),
(214) 767-6970                                               Friday, June 13, 2008
http://www.bls.gov/ro6/


                             MAY 2008 CONSUMER PRICE INDEXES
                          FOR ENERGY, FOOD AT HOME, AND SHELTER
                            HOUSTON-GALVESTON-BRAZORIA, TEXAS

     Energy prices rose 5.5 percent in the Houston-Galveston-Brazoria metropolitan area 
during May, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  
Regional Commissioner Stanley W. Suchman noted this was the largest monthly gain since April 
2007 when the energy index increased 6.5 percent.  Prices for food at home also rose during 
the month, up 1.1 percent, while shelter costs were little changed.  These data are based on 
the Consumer Price Index for All Urban Consumers (CPI-U).  

     The 5.5-percent increase in the energy index was almost entirely the result of higher 
motor fuel prices.  Gasoline costs climbed 8.4 percent in May, following increases of 6.3 
percent in April and 7.3 percent in March.  During the last 12 months, local gasoline costs 
rose 21.6 percent.  The average price for a gallon of gasoline in the Houston metropolitan 
area stood at $3.689 in May.  The index for household energy increased 0.8 percent in May 
led by a 0.9-percent rise in electricity prices; natural gas costs were unchanged.  On an 
annual basis, electricity prices fell 9.0 percent while natural gas costs increased 21.8 
percent.  The combined annual movements for motor fuel and household fuels placed the total 
cost of energy 10.6 percent above May 2007.

     The index for food at home rose 1.1 percent in May with higher prices noted for fresh 
fruits -- particularly citrus fruits, beef and veal, tomatoes, and breakfast cereals.  Lower 
prices were registered for eggs and potatoes.  The cost of grocery items rose 5.0 percent 
during the last 12 months.  The Consumer Price Index (CPI-U) for food at home stood at 
196.582 on the 1982-84=100 reference base, meaning that a typical basket of grocery items 
priced at $100.00 in 1982-84 would have cost Houston area consumers $196.58 last month.

     The shelter index was little changed in May, edging up 0.1 percent, after registering 
decreases in both March and April.  Owners’ equivalent rent (homeowners’ costs) advanced 0.7 
percent in May and the index for rent of a primary residence (renters’ costs) rose 0.2 
percent.  However, these increases were nearly offset by a decline in the cost of lodging 
away from home (hotel and motel rates).  During the last 12 months, homeowners’ costs rose 
3.0 percent and renters’ costs increased 2.2 percent.  The index for lodging away from home 
rose at a faster annual pace and helped push total shelter costs up 3.2 percent over the 
year.

     The Houston-Galveston-Brazoria Consolidated Metropolitan Statistical Area (CMSA) 
includes Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller 
Counties.  Local area CPI indexes are by-products of the national CPI program.  Because each 
local area index is a small subset of the national index, the sample size is smaller and 
therefore 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.


Next Release Date:  The Houston-Galveston-Brazoria June CPI for All Items will be released
on July 16, 2008.

 

Last Modified Date: June 13, 2008