The Consumer Price Index for All Urban Consumers (CPI-U) in the Midwest rose 0.4 percent in April, the U.S. Bureau of Labor Statistics reported today. The monthly advance was largely attributable to increases in the indexes for all items less food and energy (0.3 percent) and energy (2.6 percent). Food prices, up 0.4 percent, also contributed to the increase. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the impact of seasonal influences.)

The CPI-U for the Midwest advanced 0.8 percent from April 2015 to April 2016. (See chart 1 and table A.) The energy index, which includes motor fuel and household fuels, fell 8.2 percent, but prices for food were up 0.8 percent. Excluding food and energy, the CPI-U rose 1.8 percent over the year. (See table 1.)

Food

Food prices in the Midwest turned up 0.4 percent in April. The index for food at home rose 0.4 percent and costs for food away from home were 0.5 percent higher.

From April 2015 to April 2016, the index for food advanced 0.8 percent. Rising costs for food away from home (2.5 percent) were responsible for the yearly advance. Prices for food at home registered their seventh consecutive over-the-year decline, down 0.2 percent since April 2015. 

Energy

The energy index rose 2.6 percent in April following an increase of 7.7 percent in March. Higher motor fuel prices were largely responsible for both increases, rising 7.7 percent in April after registering a 20.2-percent jump in the prior month. Moderating the overall increase in the energy index, electricity prices declined 0.3 percent in April and costs for utility (piped) gas service were down 3.7 percent.

Despite the recent monthly advances, energy prices decreased 8.2 percent from April 2015 to April 2016. Prices for motor fuel and utility (piped) gas service were down 13.1 and 10.5 percent, respectively. Costs for electricity were little changed (0.1 percent) over the year.

All items less food and energy

The index for all items less food and energy for the Midwest rose 0.3 percent in April. Expenditure categories registering higher prices over the month included shelter (0.2 percent), recreation (0.5 percent), used cars and trucks (1.0 percent), and education and communication (0.3 percent).

The index for all items less food and energy was up 1.8 percent from April 2015 to April 2016. A 2.8-percent rise in shelter costs led the advance. Prices for medical care services had the next largest upward impact with a 3.0-percent increase.

The Midwest Consumer Price Index for All Urban Consumers (CPI-U) stood at 225.609 in April 2016. A typical market basket of goods and services that cost $100.00 in the 1982-84 base period cost $225.61 in April 2016.

CPI-W

In April, the Midwest Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 219.816, up 0.5 percent over the month. The CPI-W increased 0.5 percent over the year.

Table A. Midwest region CPI-U 1-month and 12-month percent changes, all items index, not seasonally adjusted

Month	2012		2013		2014		2015		2016
	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month
January	0.6	2.8	0.1	1.3	0.5	1.4	-0.6	-0.3	0.3	0.8
February	0.2	2.7	1.1	2.2	0.6	0.9	0.3	-0.5	0.0	0.4
March	1.0	2.8	0.2	1.4	0.9	1.5	0.6	-0.9	0.6	0.5
April	0.2	2.3	-0.1	1.2	0.3	1.9	0.1	-1.1	0.4	0.8
May	-0.1	1.5	0.5	1.8	0.2	1.6	0.4	-0.8
June	-0.1	1.4	0.3	2.2	0.5	1.7	0.5	-0.7
July	0.0	1.3	-0.4	1.8	-0.3	1.8	0.0	-0.5
August	0.7	1.8	0.1	1.2	-0.2	1.6	0.0	-0.3
September	0.3	1.9	0.1	1.0	0.1	1.6	-0.3	-0.8
October	-0.3	2.2	-0.5	0.8	-0.5	1.6	-0.1	-0.3
November	-0.4	1.8	-0.2	1.0	-0.6	1.2	-0.5	-0.2
December	-0.2	1.8	-0.2	1.0	-0.7	0.7	-0.6	0.0

The May 2016 Consumer Price Index for the Midwest region is scheduled to be released on Thursday, June 16, 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 approximately 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/cpi/.

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 areas; they only measure the average change in prices for each area since the base period.

The Midwest region is comprised of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.

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