The Consumer Price Index for All Urban Consumers (CPI-U) in the Boston-Brockton-Nashua area edged up 0.1 percent in July, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Deborah A. Brown noted that the two-month increase was mainly due to higher prices paid by area consumers for food, up 1.0 percent, and to a lesser extent, higher prices within all items less food and energy, up 0.1 percent. Energy prices, down 1.9 percent, almost entirely offset the 2-month increase. (Data in this report are not seasonally adjusted. Accordingly, bimonthly changes may reflect the impact of seasonal influences.)

Over the last 12 months, the Boston CPI-U rose 2.2 percent. The increase was largely attributable to higher prices within all items less food and energy, up 1.8 percent (See chart 1.). Higher energy prices paid by area consumers, up 7.2 percent also contributed to the increase and to a lesser extent, food prices, up 1.5 percent over the year, contributed also.

 

 

Food

Food prices edged up 1.0 percent since May mainly due to higher grocery store or food at home prices, up 0.9 percent. Restaurant prices, or food away from home, up 1.1 percent, also contributed to the increase.

Food prices increased 1.5 percent over the year, mainly due to higher restaurant prices, or food away from home, up 2.2 percent.  Grocery store prices edged up 1.2 percent, also contributing to the increase.

 

Energy

The energy index decreased 1.9 percent over the two months, mainly driven by lower gasoline prices down 3.2 percent. To a lesser extent, lower prices for electricity down 0.9 percent also contributed to the decrease. Higher prices for utility piped gas, up 1.9 percent partially offset the decrease.

Energy prices were up 7.2 percent from a year ago, largely attributable to higher electricity prices, up 9.7 percent. Higher prices for gasoline, up 4.0 percent, and utility (piped) gas up 11.0 percent, also contributed to the overall increase. 

 

All items less food and energy

The index for all items less food and energy edged up from May (0.1 percent).  The increase was mainly attributable to shelter up 1.0 percent. This was driven by higher prices for owners’ equivalent rent of residences, up 1.0 percent. Lower prices for apparel partially offset the increase, down 6.7 percent.

Over the year, the index for all items less food and energy rose 1.8 percent, with higher shelter costs being the main driver of the increase up 2.3 percent. Within shelter, higher costs for owners’ equivalent rent of residences, up 2.3 percent, led the increase. Higher recreation and other goods and services prices up 6.0 percent and 6.9 percent, respectively, also contributed to the overall increase.

CPI-W

In July, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 265.002. The CPI-W was up 0.1 percent over two months and increased 2.2 percent over the year.

The September 2017 Consumer Price Index for Boston-Brockton-Nashua is scheduled to be released on Friday, October 13, 2017, at 8:30 a.m. (ET).

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 change 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 https://www.bls.gov/opub/hom/pdf/homch17.pdf. 

In calculating the index, price changes for the various items in each location are averaged together withweights 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 Boston-Brockton-Nashua, Mass.-N.H.-Maine-Conn. consolidated area covered in this release is comprised of Essex, Middlesex, Norfolk, Plymouth, Suffolk, Bristol, Hampden, and Worcester Counties in Massachusetts; Hillsborough, Merrimack, Rockingham, and Strafford Counties in New Hampshire; York County in Maine; and Windham County in Connecticut.

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.