The Consumer Price Index for All Urban Consumers (CPI-U) in the Detroit-Ann Arbor-Flint area decreased 0.1 percent from June to August, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the energy index declined 4.5 percent, while the food index decreased 0.1 percent over the bi-monthly period. The index for all items less food and energy increased 0.4 percent from June to August. Among the indexes within the all items less food and energy category, prices were higher for apparel, medical care, and recreation. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the impact of seasonal influences.)

Over the past 12 months, the Detroit all items CPI-U increased 1.7 percent. (See chart 1 and table A.) The energy index decreased 8.1 percent over the year, primarily due to declines in gasoline prices. The index for all items less food and energy rose 3.0 percent over the year. (See table 1.)

Food

Food prices decreased 0.1 percent from June to August following a 0.9-percent decrease over the previous bi-monthly period. Of the two components within the food index, prices for food at home (groceries) declined 0.2 percent, and prices for food away from home (restaurant, cafeteria, and vending purchases) rose 0.1 percent.

Over the year, food prices in the Detroit area increased 0.8 percent. Grocery prices were 1.4 percent higher, and prices for food away from home decreased 0.1 percent over the year.

Energy

The energy index for Detroit declined 4.5 percent from June to August. Prices fell for gasoline (12.5 percent) while the indexes for electricity and utility (piped) gas service rose 4.0 percent and 1.7 percent, respectively.

From August 2015 to August 2016, overall energy prices decreased 8.1 percent. Gasoline prices fell 15.9 percent, and utility (piped) gas service costs were 5.8 percent lower. In contrast, electricity costs rose 4.3 percent over the year.

All items less food and energy

The index for all items less food and energy increased 0.4 percent from June to August. Among the index’s components, prices were higher for apparel (6.3 percent), medical care (1.0 percent), and recreation (0.5 percent).

Over the year, the index for all items less food and energy rose 3.0 percent. Among the index’s components, shelter (3.0 percent), recreation (7.0 percent), and medical care (5.4 percent) recorded increases.

Table A. Detroit CPI-U 2-month and 12-month percent changes, all items index, not seasonally adjusted

Month	2012		2013		2014		2015		2016
	2-month	12-month	2-month	12-month	2-month	12-month	2-month	12-month	2-month	12-month
February	0.6	3.9	1.1	1.9	1.1	0.7	-0.7	-1.8	0.3	0.9
April	0.6	2.1	0.0	1.3	1.3	2.0	1.2	-1.9	1.4	1.1
June	-0.8	0.4	1.2	3.3	0.5	1.3	0.0	-2.4	1.2	2.3
August	1.2	1.5	-0.7	1.3	-1.0	1.0	0.6	-0.9	-0.1	1.7
October	0.5	2.4	-0.1	0.7	-0.1	1.0	0.1	-0.7
December	-0.7	1.4	-0.7	0.8	-1.8	-0.1	-1.2	-0.1

The October 2016 Consumer Price Index for Detroit is scheduled to be released on Thursday, November 17, 2016.

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 89 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 28 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 6,000 housing units and approximately 24,000 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/pdf/homch17.pdf.

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 Detroit-Ann Arbor-Flint, Mich. consolidated area covered in this release is comprised of Genesee, Lapeer, Lenawee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, and Wayne Counties in Michigan.

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

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods
Detroit-Ann Arbor-Flint, MI (1982-84=100 unless otherwise noted)

Item and Group	Indexes			Percent change from-
	Jun. 2016	Jul. 2016	Aug. 2016	Aug. 2015	Jun. 2016	Jul. 2016
Expenditure category
All items	224.070	-	223.898	1.7	-0.1	-
All items (1967=100)	666.029	-	665.518	-	-	-
Food and beverages	221.584	-	221.572	0.8	0.0	-
Food	221.332	-	221.205	0.8	-0.1	-
Food at home	212.142	211.279	211.745	1.4	-0.2	0.2
Food away from home	235.789	-	236.124	-0.1	0.1	-
Alcoholic beverages	218.683	-	220.350	1.5	0.8	-
Housing	205.190	-	205.981	2.4	0.4	-
Shelter	233.743	233.867	233.350	3.0	-0.2	-0.2
Rent of primary residence (1)	239.401	239.804	240.984	3.8	0.7	0.5
Owners' equiv. rent of residences (1) (2)	229.752	229.997	231.122	3.1	0.6	0.5
Owners' equiv. rent of primary residence (1) (2)	229.752	229.997	231.122	3.1	0.6	0.5
Fuels and utilities	237.012	-	244.720	1.0	3.3	-
Household energy	183.856	183.508	189.521	-0.4	3.1	3.3
Energy services (1)	188.560	188.021	194.502	0.4	3.2	3.4
Electricity (1)	225.408	223.606	234.403	4.3	4.0	4.8
Utility (piped) gas service (1)	137.523	138.370	139.832	-5.8	1.7	1.1
Household furnishings and operations	115.555	-	116.119	-0.1	0.5	-
Apparel	109.351	-	116.193	-1.5	6.3	-
Transportation	234.835	-	228.414	-2.9	-2.7	-
Private transportation	233.580	-	227.219	-3.4	-2.7	-
Motor fuel	230.304	207.758	201.697	-15.9	-12.4	-2.9
Gasoline (all types)	229.203	206.614	200.580	-15.9	-12.5	-2.9
Gasoline, unleaded regular (3)	231.234	207.142	200.971	-16.8	-13.1	-3.0
Gasoline, unleaded midgrade (3) (4)	268.383	247.848	240.657	-13.1	-10.3	-2.9
Gasoline, unleaded premium (3)	238.964	220.386	215.159	-10.6	-10.0	-2.4
Medical care	416.582	-	420.652	5.4	1.0	-
Recreation (5)	122.117	-	122.728	7.0	0.5	-
Education and communication (5)	147.371	-	147.787	2.2	0.3	-
Other goods and services	402.672	-	402.889	0.6	0.1	-
Commodity and service group
All items	224.070	-	223.898	1.7	-0.1	-
Commodities	174.282	-	172.583	-1.5	-1.0	-
Commodities less food & beverages	149.627	-	147.235	-3.3	-1.6	-
Nondurables less food & beverages	178.893	-	174.711	-4.5	-2.3	-
Durables	115.391	-	114.665	-0.8	-0.6	-
Services	275.247	-	276.500	3.7	0.5	-
Special aggregate indexes
All items less medical care	216.344	-	215.972	1.3	-0.2	-
All items less shelter	223.262	-	223.174	1.1	0.0	-
Commodities less food	152.225	-	149.932	-3.1	-1.5	-
Nondurables	200.155	-	197.955	-1.6	-1.1	-
Nondurables less food	181.547	-	177.679	-4.0	-2.1	-
Services less rent of shelter (2)	333.839	-	337.215	4.3	1.0	-
Services less medical care services	265.815	-	266.913	3.5	0.4	-
Energy	208.394	198.235	199.048	-8.1	-4.5	0.4
All items less energy	228.362	-	229.146	2.7	0.3	-
All items less food and energy	230.214	-	231.166	3.0	0.4	-
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) Special index based on a substantially smaller sample. (4) Indexes on a December 1993=100 base. (5) Indexes on a December 1997=100 base.
- Data not available. NOTE: Index applies to a month as a whole, not to any specific date.