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14-1360-KAN

Tuesday, July 22, 2014

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Consumer Price Index, West Region June 2014

Area prices were up 0.1 percent over the past month, up 2.3 percent from a year ago


Prices in the West Region, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), were little changed, edging up 0.1 percent in June, the U.S. Bureau of Labor Statistics reported today. (See table A.) Regional Commissioner Stanley W. Suchman noted that the June movement was influenced by higher prices for shelter and electricity. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect seasonal influences.)

For the second consecutive month, the CPI-U in the West had an over-the-year increase of 2.3 percent. The last time the CPI-U had an over-the-year increase of more than 2.0 percent was in October 2012, when prices rose 2.5 percent. (See chart 1.) Energy prices rose 2.9 percent, led by an increase in the price of electricity. The index for all items less food and energy rose 2.2 percent since June 2013.

Chart 1. Over-the-year percent change in CPI-U, West Region, June 2011-June 2014

Food

Food prices inched down 0.1 percent for the month of June. (See table 1.) Prices for food at home decreased 0.4 percent, but prices for food away from home inched up 0.2 percent for the same period.

Over the year, food prices advanced 2.5 percent. Prices for food at home increased 2.7 percent since a year ago, and prices for food away from home rose 2.2 percent.

Energy

The energy index increased 0.4 percent over the month. The increase was mainly due to higher prices for electricity (1.9 percent). Prices for gasoline were virtually unchanged, and prices for natural gas service declined 0.3 percent in June.

Energy prices rose 2.9 percent over the year, led by higher prices for electricity (4.4 percent). Prices paid for natural gas service increased 8.3 percent, and prices for gasoline rose 1.3 percent during the past year.

All items less food and energy

The index for all items less food and energy edged up 0.1 percent in June. Among the expenditure categories posting higher prices were household furnishings and operations (0.5 percent), medical care (0.3 percent), and shelter (0.2 percent). In contrast, lower prices were recorded for new vehicles (-0.7 percent), alcoholic beverages (-0.6 percent), and other goods and services (-0.3 percent).

Over the year, the index for all items less food and energy rose 2.2 percent. Components contributing to the increase included shelter (3.3 percent) and medical care (2.8 percent). Partly offsetting the increases was a price decline in the index for household furnishings and operations (-1.0 percent).


Table A. West Urban CPI-U monthly and annual percent changes (not seasonally adjusted)
Month 2009 2010 2011 2012 2013 2014
Monthly Annual Monthly Annual Monthly Annual Monthly Annual Monthly Annual Monthly Annual

January

0.6 0.1 0.3 1.9 0.5 1.4 0.4 2.6 0.3 1.7 0.3 1.7

February

0.5 0.3 0.1 1.4 0.6 1.9 0.4 2.5 0.8 2.0 0.4 1.3

March

0.1 -0.5 0.3 1.6 0.9 2.6 0.9 2.4 0.4 1.5 0.6 1.5

April

0.3 -0.7 0.2 1.5 0.6 3.0 0.2 2.1 0.0 1.3 0.3 1.8

May

0.3 -1.1 0.1 1.3 0.3 3.2 0.2 2.0 0.2 1.3 0.6 2.3

June

0.6 -1.4 -0.1 0.6 -0.2 3.1 -0.2 2.0 0.1 1.5 0.1 2.3

July

-0.2 -2.0 0.1 0.8 -0.1 2.9 -0.3 1.8 0.0 1.9

August

0.2 -1.3 0.1 0.7 0.2 3.0 0.5 2.1 0.1 1.5

September

0.2 -0.8 -0.1 0.5 0.4 3.5 0.5 2.2 0.2 1.3

October

0.1 -0.3 0.1 0.6 0.0 3.4 0.4 2.5 -0.1 0.9

November

-0.3 1.2 0.0 0.9 -0.2 3.2 -0.7 1.9 -0.4 1.3

December

-0.2 2.2 0.2 1.3 -0.3 2.7 -0.5 1.7 0.0 1.8

CPI-W

In June, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 235.845, up 0.1 percent from May. The CPI-W increased 2.2 percent over the year.

____________

The July 2014 Consumer Price Index for the West Region is scheduled to be released on August 19, 2014.



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 88 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 29 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 4,000 housing units and approximately 26,000 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 West Region covered in this release is comprised of the following thirteen states: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: 1 (800) 877-8339.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods

West (1982-84=100 unless otherwise noted)
Item and Group

Indexes
Percent change from-
Apr.
2014
May
2014
Jun.
2014
Jun.
2013
Apr.
2014
May
2014

Expenditure category

 
 

All Items

239.808 241.350 241.616 2.3 0.8 0.1

All items (December 1977=100)

387.636 390.129 390.559      

Food and beverages

242.760 244.121 243.685 2.3 0.4 -0.2

Food

242.718 244.112 243.751 2.5 0.4 -0.1

Food at home

242.726 244.742 243.731 2.7 0.4 -0.4

Food away from home

241.511 242.022 242.580 2.2 0.4 0.2

Alcoholic beverages

239.960 240.886 239.503 0.3 -0.2 -0.6

Housing

242.815 245.240 246.075 3.0 1.3 0.3

Shelter

274.071 274.974 275.658 3.3 0.6 0.2

Rent of primary residence (1)

286.259 286.829 287.719 3.9 0.5 0.3

Owners' equiv. rent of residences (1) (2)

287.774 288.271 289.005 3.0 0.4 0.3

Owners' equiv. rent of primary residence (1) (2)

287.767 288.267 289.004 3.0 0.4 0.3

Fuels and utilities

257.994 276.167 278.616 4.8 8.0 0.9

Household energy

224.403 247.385 250.490 5.3 11.6 1.3

Energy services (1)

225.265 249.323 252.673 5.3 12.2 1.3

Electricity (1)

241.113 272.761 277.844 4.4 15.2 1.9

Utility (piped) gas service (1)

201.757 209.205 208.627 8.3 3.4 -0.3

Household furnishings and operations

128.113 128.370 128.983 -1.0 0.7 0.5

Apparel

123.012 122.019 122.001 1.9 -0.8 0.0

Transportation

221.453 223.474 223.193 1.3 0.8 -0.1

Private transportation

215.125 216.237 216.049 1.1 0.4 -0.1

New and used motor vehicles (3)

101.790 101.789 101.441 -0.2 -0.3 -0.3

New vehicles

146.284 146.155 145.146 0.1 -0.8 -0.7

New cars and trucks (3) (4)

101.627 101.531 100.888 0.1 -0.7 -0.6

New cars (4)

146.916 146.905 145.722 -0.4 -0.8 -0.8

Used cars and trucks

146.421 147.301 147.832 0.3 1.0 0.4

Motor fuel

316.587 320.652 320.396 1.5 1.2 -0.1

Gasoline (all types)

315.309 319.416 319.168 1.3 1.2 -0.1

Gasoline, unleaded regular (4)

314.336 318.600 318.338 1.3 1.3 -0.1

Gasoline, unleaded midgrade (4) (5)

296.559 299.443 299.070 1.2 0.8 -0.1

Gasoline, unleaded premium (4)

299.459 302.887 302.658 1.3 1.1 -0.1

Medical Care

437.756 439.753 440.898 2.8 0.7 0.3

Medical care commodities

326.435 328.910 331.821 2.1 1.6 0.9

Medical care services

473.589 475.352 475.762 3.0 0.5 0.1

Professional services

330.367 332.169 331.143 1.8 0.2 -0.3

Recreation (3)

110.633 110.399 110.373 1.0 -0.2 0.0

Education and communication (3)

138.348 138.345 138.455 1.6 0.1 0.1

Other goods and services

398.038 397.420 396.164 1.1 -0.5 -0.3
 

Commodity and Service Group

 
 

All Items

239.808 241.350 241.616 2.3 0.8 0.1

Commodities

185.762 186.363 186.172 0.9 0.2 -0.1

Commodities less food & beverages

155.829 156.096 156.012 -0.1 0.1 -0.1

Nondurables less food & beverages

203.949 204.650 204.774 0.9 0.4 0.1

Nondurables less food, beverages, and apparel

260.660 262.494 262.715 0.5 0.8 0.1

Durables

111.491 111.366 111.093 -1.4 -0.4 -0.2

Services

289.225 291.656 292.360 3.2 1.1 0.2

Rent of shelter (2)

291.655 292.497 293.237 3.2 0.5 0.3

Transportation services

280.043 283.792 283.932 3.4 1.4 0.0

Other services

332.829 332.869 332.866 2.4 0.0 0.0
 

Special aggregate indexes:

 
 

All items less medical care

230.679 232.194 232.424 2.2 0.8 0.1

All items less food

239.544 241.111 241.477 2.2 0.8 0.2

All items less shelter

227.367 229.195 229.285 1.8 0.8 0.0

Commodities less food

159.233 159.521 159.398 -0.1 0.1 -0.1

Nondurables

224.562 225.581 225.444 1.6 0.4 -0.1

Nondurables less food

207.147 207.865 207.900 0.8 0.4 0.0

Nondurables less food and apparel

258.272 260.016 260.082 0.4 0.7 0.0

Services less rent of shelter (2)

319.002 323.794 324.531 3.1 1.7 0.2

Services less medical care services

276.452 278.903 279.619 3.2 1.1 0.3

Energy

277.977 290.668 291.935 2.9 5.0 0.4

All items less energy

238.860 239.570 239.762 2.3 0.4 0.1

All items less food and energy

238.935 239.528 239.818 2.2 0.4 0.1

Commodities less food and energy commodities

141.522 141.386 141.290 -0.3 -0.2 -0.1

Energy commodities

320.772 324.614 324.253 1.5 1.1 -0.1

Services less energy services

294.028 295.086 295.623 3.1 0.5 0.2

Footnotes
(1) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator.
(2) Index is on a December 1982=100 base.
(3) Indexes on a December 1997=100 base.
(4) Special index based on a substantially smaller sample.
(5) Indexes on a December 1993=100 base.

Regions defined as the four Census regions. West includes Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.
NOTE: Index applies to a month as a whole, not to any specific date. Data not seasonally adjusted.