The Consumer Price Index for All Urban Consumers (CPI-U) in the Milwaukee-Racine area rose 2.2 percent from the first half of 2016 to the first half of 2017, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the all items less food and energy index was 2.0 percent higher compared to its first half 2016 level as price increases were noted for shelter and medical care, but lower for education and communication. Food prices rose 1.1 percent over the year and the index for energy increased 6.9 percent. (See chart 1.)

Food

Food prices rose 1.1 percent from their first half 2016 levels. Within the food category, the index for food away from home (restaurant, cafeteria, and vending purchases) was up 1.6 percent and prices for food at home (groceries) were 0.7 percent higher.

Energy

The energy index was 6.9 percent higher from the first half of 2016 to the first half of 2017. Within the energy category, the indexes for gasoline and utility (piped) gas service advanced 13.1 percent and 7.4 percent, respectively, over the year. The index for electricity fell 1.1 percent compared to its first half 2016 level.

All items less food and energy

The all items less food and energy index increased 2.0 percent over the year. Among the index’s components, higher costs were recorded for shelter (3.9 percent) and medical care (2.8 percent). Prices declined 3.0 percent for education and communication over the year.

The second half 2017 Consumer Price Index for Milwaukee-Racine is scheduled to be released in January 2018.

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 Milwaukee-Racine, Wis., consolidated area covered in this release is comprised of Milwaukee, Ozaukee, Racine, Washington, and Waukesha Counties in Wisconsin.

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 for semiannual averages and percent changes for selected periods
Milwaukee-Racine, WI (1982-84=100 unless otherwise noted)

Item and Group	Semiannual average indexes			Percent change to 1st half 2017 from-
	1st half 2016	2nd half 2016	1st half 2017	1st half 2016	2nd half 2016
Expenditure category
All Items	227.147	228.624	232.123	2.2	1.5
All items (1967=100)	701.568	706.129	716.938	-	-
Food and beverages	249.801	250.323	252.286	1.0	0.8
Food	253.851	254.429	256.567	1.1	0.8
Food at home	243.964	241.687	245.679	0.7	1.7
Food away from home	270.570	276.054	275.003	1.6	-0.4
Alcoholic beverages	211.580	211.536	211.738	0.1	0.1
Housing	215.621	218.560	222.684	3.3	1.9
Shelter	263.454	267.956	273.748	3.9	2.2
Rent of primary residence(1)	243.815	248.355	251.998	3.4	1.5
Owners' equiv. rent of residences(1)(2)	280.692	285.330	290.615	3.5	1.9
Owners' equiv. rent of primary residence(1)(2)	280.692	285.330	290.615	3.5	1.9
Fuels and utilities	208.691	210.836	211.663	1.4	0.4
Household energy	169.269	171.326	171.898	1.6	0.3
Energy services(1)	174.696	176.627	176.975	1.3	0.2
Electricity(1)	213.153	214.931	210.829	-1.1	-1.9
Utility (piped) gas service(1)	109.147	111.114	117.275	7.4	5.5
Household furnishings and operations	98.328	97.677	99.166	0.9	1.5
Apparel	143.679	143.494	148.109	3.1	3.2
Transportation	178.677	179.366	184.930	3.5	3.1
Private transportation	170.303	171.670	175.972	3.3	2.5
Motor fuel	186.601	198.775	211.158	13.2	6.2
Gasoline (all types)	184.274	196.116	208.376	13.1	6.3
Gasoline, unleaded regular(3)	180.211	193.095	205.490	14.0	6.4
Gasoline, unleaded midgrade(3)(4)	206.462	217.447	228.455	10.7	5.1
Gasoline, unleaded premium(3)	189.200	198.170	208.105	10.0	5.0
Medical care	492.159	501.719	506.096	2.8	0.9
Recreation(5)	119.058	118.098	119.458	0.3	1.2
Education and communication(5)	152.158	149.991	147.566	-3.0	-1.6
Other goods and services	397.126	396.424	401.188	1.0	1.2
Commodity and service group
All Items	227.147	228.624	232.123	2.2	1.5
Commodities	175.980	176.466	178.776	1.6	1.3
Commodities less food & beverages	142.995	143.453	145.819	2.0	1.6
Nondurables less food & beverages	192.621	197.039	202.268	5.0	2.7
Durables	98.030	95.803	96.058	-2.0	0.3
Services	276.332	278.752	283.390	2.6	1.7
Special aggregate indexes
All items less medical care	215.492	216.610	220.072	2.1	1.6
All items less shelter	215.906	216.266	218.945	1.4	1.2
Commodities less food	145.594	146.038	148.341	1.9	1.6
Nondurables	221.692	224.313	228.051	2.9	1.7
Nondurables less food	193.787	197.877	202.736	4.6	2.5
Services less rent of shelter(2)	303.456	303.596	307.056	1.2	1.1
Services less medical care services	259.263	261.594	266.324	2.7	1.8
Energy	178.639	185.158	190.920	6.9	3.1
All items less energy	234.259	235.264	238.583	1.8	1.4
All items less food and energy	231.893	232.968	236.483	2.0	1.5
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 November 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: Data not seasonally adjusted.