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Friday, July 14, 2017

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Consumer Price Index, Detroit-Ann Arbor-Flint — June 2017

Local prices rose 1.1 percent over the year

The Consumer Price Index for All Urban Consumers (CPI-U) in the Detroit-Ann Arbor-Flint area remained unchanged from April to June, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the energy and food indexes declined 1.7 percent and 0.9 percent, respectively, over the bi-monthly period. The index for all items less food and energy increased 0.4 percent from April to June. Among the indexes within the all items less food and energy category, prices were higher for shelter. (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 1.1 percent. (See chart 1 and table A.) The energy index fell 1.2 percent over the year, primarily due to declines in gasoline prices. The index for all items less food and energy rose 1.6 percent over the year. (See table 1.)

Food

Food prices declined 0.9 percent from April to June. Of the two components within the food index, prices for food at home (groceries) fell 1.0 percent and prices for food away from home (restaurant, cafeteria, and vending purchases) fell 0.6 percent.

Over the year, food prices in the Detroit area declined 0.3 percent. Grocery prices fell 1.1 percent, while prices for food away from home rose 0.9 percent from June 2016.

Energy

The energy index for Detroit decreased 1.7 percent from April to June, primarily due to gasoline prices falling 4.2 percent. In contrast, electricity costs and utility (piped) gas service costs rose 1.5 percent and 0.6 percent, respectively.

From June 2016 to June 2017, overall energy prices fell 1.2 percent. Gasoline prices declined 6.2 percent over the year. The utility (piped) gas service index and the electricity index rose by 7.0 percent and 0.9 percent, respectively.

All items less food and energy

The index for all items less food and energy increased 0.4 percent from April to June. Among the index’s components, prices were higher for shelter (1.7 percent), but lower for recreation (-1.8 percent) and apparel (-2.9 percent).

Over the year, the index for all items less food and energy rose 1.6 percent. Increases in the indexes for shelter (4.7 percent), medical care (4.3 percent), and apparel (6.8 percent) were major contributing factors.

Table A. Detroit CPI-U 2-month and 12-month percent changes, all items index, not seasonally adjusted
Month 2013 2014 2015 2016 2017
2-month 12-month 2-month 12-month 2-month 12-month 2-month 12-month 2-month 12-month

February

1.1 1.9 1.1 0.7 -0.7 -1.8 0.3 0.9 0.9 3.0

April

0.0 1.3 1.3 2.0 1.2 -1.9 1.4 1.1 0.7 2.3

June

1.2 3.3 0.5 1.3 0.0 -2.4 1.2 2.3 0.0 1.1

August

-0.7 1.3 -1.0 1.0 0.6 -0.9 -0.1 1.7    

October

-0.1 0.7 -0.1 1.0 0.1 -0.7 0.2 1.7    

December

-0.7 0.8 -1.8 -0.1 -1.2 -0.1 -0.6 2.4    

The August 2017 Consumer Price Index for Detroit is scheduled to be released on Thursday, September 14, 2017.

Consumer Price Index Geographic Revision for 2018

In January 2018, BLS will introduce a new geographic area sample for the Consumer Price Index (CPI). As part of the new sample, the index for this area will be renamed. The first indexes using the new structure will be published in February 2018. Additional information on the geographic revision is available at: www.bls.gov/cpi/georevision2018.htm.


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-
Apr.
2017
May
2017
Jun.
2017
Jun.
2016
Apr.
2017
May
2017

Expenditure category

 
 

All items

226.484 - 226.525 1.1 0.0 -

All items (1967=100)

673.204 - 673.326 - - -

Food and beverages

223.057 - 221.185 -0.2 -0.8 -

Food

222.578 - 220.676 -0.3 -0.9 -

Food at home

212.120 210.835 209.914 -1.1 -1.0 -0.4

Food away from home

239.190 - 237.816 0.9 -0.6 -

Alcoholic beverages

223.446 - 222.058 1.5 -0.6 -

Housing

211.123 - 214.142 4.4 1.4 -

Shelter

240.620 244.880 244.774 4.7 1.7 0.0

Rent of primary residence(1)

246.463 247.571 247.805 3.5 0.5 0.1

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

239.164 241.144 241.982 5.3 1.2 0.3

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

239.164 241.144 241.982 5.3 1.2 0.3

Fuels and utilities

244.703 - 245.937 3.8 0.5 -

Household energy

188.896 189.032 190.092 3.4 0.6 0.6

Energy services(1)

192.355 193.499 194.513 3.2 1.1 0.5

Electricity(1)

224.262 224.300 227.531 0.9 1.5 1.4

Utility (piped) gas service(1)

146.377 148.635 147.213 7.0 0.6 -1.0

Household furnishings and operations

117.825 - 118.368 2.4 0.5 -

Apparel

120.266 - 116.800 6.8 -2.9 -

Transportation

233.061 - 230.768 -1.7 -1.0 -

Private transportation

232.159 - 230.658 -1.3 -0.6 -

Motor fuel

225.634 211.718 216.224 -6.1 -4.2 2.1

Gasoline (all types)

224.446 210.494 215.008 -6.2 -4.2 2.1

Gasoline, unleaded regular(3)

225.621 210.771 215.696 -6.7 -4.4 2.3

Gasoline, unleaded midgrade(3)(4)

266.234 252.221 255.866 -4.7 -3.9 1.4

Gasoline, unleaded premium(3)

237.448 227.679 230.847 -3.4 -2.8 1.4

Medical care

434.102 - 434.355 4.3 0.1 -

Recreation(5)

119.170 - 117.029 -4.2 -1.8 -

Education and communication(5)

138.820 - 139.189 -5.6 0.3 -

Other goods and services

401.719 - 395.771 -1.7 -1.5 -
 

Commodity and service group

 
 

All items

226.484 - 226.525 1.1 0.0 -

Commodities

175.227 - 173.142 -0.7 -1.2 -

Commodities less food & beverages

150.320 - 148.192 -1.0 -1.4 -

Nondurables less food & beverages

183.642 - 178.992 0.1 -2.5 -

Durables

112.607 - 112.749 -2.3 0.1 -

Services

279.085 - 281.115 2.1 0.7 -
 

Special aggregate indexes

 
 

All items less medical care

218.062 - 218.093 0.8 0.0 -

All items less shelter

223.977 - 222.425 -0.4 -0.7 -

Commodities less food

153.032 - 150.914 -0.9 -1.4 -

Nondurables

203.353 - 200.015 -0.1 -1.6 -

Nondurables less food

186.309 - 181.828 0.2 -2.4 -

Services less rent of shelter(2)

334.186 - 333.700 0.0 -0.1 -

Services less medical care services

269.352 - 271.495 2.1 0.8 -

Energy

209.256 203.189 205.794 -1.2 -1.7 1.3

All items less energy

230.967 - 231.374 1.3 0.2 -

All items less food and energy

233.073 - 233.902 1.6 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. Data not seasonally adjusted.
 

 

Last Modified Date: Friday, July 14, 2017