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Wednesday, January 18, 2017

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Consumer Price Index, New York-Northern New Jersey – December 2016

Area prices up 0.1 percent over the month and 2.1 percent over the year

Prices in the New York-Northern New Jersey-Long Island area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), inched up 0.1 percent in December after edging up 0.2 percent in November, the U.S. Bureau of Labor Statistics reported today. Chief Regional Economist Martin Kohli noted that higher energy prices were partly offset by a seasonal decline in prices for apparel. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the impact of seasonal influences.)

Over the year, the CPI-U advanced 2.1 percent, the largest 12-month increase in over three years. The index for all items less food and energy rose 2.0 percent. (See table A and chart 1.) Higher prices for shelter drove the 12-month change in both indexes. (See table 1.)

 

Food

The food index was unchanged for the second consecutive month. Prices for food at home declined 0.1 percent, while prices for food away from home were flat. Groceries with lower prices in December included cheese, tomatoes, and other beverage materials, including tea.

For the year ended in December 2016, the food index was unchanged. Prices for food at home decreased 2.4 percent, enough to counterbalance a 3.5-percent rise in prices for food away from home.

Energy

The energy index rose 2.7 percent after rising the same amount in November. A 3.3-percent rise in household energy accompanied a 1.8-percent increase in gasoline prices. Within household energy, natural gas prices rose 4.6 percent. Electricity (2.1 percent) and fuel oil were also up over the month.

From December 2015 to December 2016, energy prices rose 9.2 percent. Increases were widespread, with gasoline prices advancing 12.9 percent and household energy prices advancing 6.9 percent. Among household energy components, natural gas jumped 15.1 percent—the largest increase in over eight years. Electricity prices, up 2.7 percent, and higher fuel oil prices also contributed to the increase.

All items less food and energy

The index for all items less food and energy declined 0.1 percent in December, in part due to a seasonal decline in prices for apparel (-3.6 percent). A 0.6-percent rise in education and communication, which included price increases for land-line telephone services, partially offset the seasonal decline. Shelter inched up 0.1 percent, with price increases in both residential rent (0.4 percent) and owners’ equivalent rent (0.1 percent). Household furnishings and operations also increased (1.4 percent).

Over the year, the index for all items less food and energy rose 2.0 percent. Shelter prices advanced 3.2 percent. Within shelter, owners’ equivalent rent rose 3.0 percent and residential rent, 2.8 percent. Other price increases included medical care (5.6 percent) and recreation (2.5 percent). In contrast, apparel prices dropped 4.4 percent, and prices for household furnishings and operations were down 3.0 percent.

Table A. New York-Northern New Jersey-Long Island CPI-U 1-month and 12-month percent changes (not seasonally adjusted)
Month 2011 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 1-month 12-month

January

0.3 1.5 0.4 2.8 0.5 2.2 0.9 1.9 0.1 -0.5 0.2 0.8

February

0.5 2.1 0.4 2.6 0.6 2.4 -0.2 1.1 0.3 0.1 0.2 0.6

March

0.7 2.3 0.6 2.6 0.1 1.9 0.4 1.3 0.2 -0.1 0.2 0.7

April

0.4 2.5 0.2 2.4 -0.2 1.4 0.0 1.6 0.1 0.0 0.4 1.0

May

0.6 2.9 0.1 1.8 0.1 1.4 0.5 1.9 0.4 -0.1 0.3 0.9

June

0.2 3.2 -0.1 1.6 0.3 1.8 0.0 1.7 0.2 0.1 0.2(R) 0.9(R)

July

0.3 3.3 -0.2 1.1 0.2 2.1 0.1 1.6 -0.1 -0.1 -0.1 1.0

August

0.4 3.5 0.6 1.4 0.1 1.7 -0.2 1.3 0.1 0.1 0.2 1.1

September

0.2 3.8 0.4 1.6 0.3 1.6 0.0 1.0 0.2 0.3 0.2 1.0

October

-0.2 3.3 -0.1 1.7 -0.6 1.1 -0.2 1.3 -0.1 0.4 0.1 1.2

November

-0.3 3.0 0.0 2.0 0.1 1.2 -0.4 0.8 -0.2 0.6 0.2 1.6

December

-0.4 2.7 -0.3 2.1 0.0 1.5 -0.5 0.3 -0.4 0.7 0.1 2.1

Footnotes:
(R) = revised.
 

CPI-W

In December, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 259.789, up 0.2 percent over the month. The CPI-W rose 2.1 percent over the year.

The January 2017 Consumer Price Index for New York-Northern New Jersey-Long Island is scheduled to be released Wednesday, February 15, 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 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/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 New York-Northern New Jersey-Long Island, N.Y.-N.J.-Conn.-Pa. consolidated area covered in this release is comprised of Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, and Westchester Counties in New York State; Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren Counties in New Jersey; Fairfield County and parts of Litchfield, Middlesex, and New Haven Counties in Connecticut; and Pike County in Pennsylvania.

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, New York-Northern N.J.-Long Island, NY-NJ-CT-PA (1982-84=100 unless otherwise noted)(not seasonally adjusted)
Item and Group Indexes Percent change from-
Oct.
2016
Nov.
2016
Dec.
2016
Dec.
2015
Oct.
2016
Nov.
2016
 

Expenditure category

 
 

All items

264.738 265.203 265.421 2.1 0.3 0.1

All items (1967=100)

765.320 766.664 767.295      
 

Food and beverages

257.031 257.208 257.012 0.1 0.0 -0.1

Food

256.847 256.951 256.849 0.0 0.0 0.0

Food at home

248.197 248.012 247.754 -2.4 -0.2 -0.1

Food away from home

276.025 276.552 276.672 3.5 0.2 0.0

Alcoholic beverages

255.126 256.281 254.823 0.7 -0.1 -0.6
 

Housing

286.510 287.452 288.586 3.0 0.7 0.4

Shelter

363.532 365.114 365.319 3.2 0.5 0.1

Rent of primary residence(1)

374.891 375.539 377.194 2.8 0.6 0.4

Owners' equivalent rent of residences(1)(2)

370.047 371.287 371.689 3.0 0.4 0.1

Owners' equivalent rent of primary residence(1)(2)

369.572 370.812 371.213 3.0 0.4 0.1

Fuels and utilities

176.855 177.883 183.017 6.2 3.5 2.9

Household energy

167.869 168.910 174.421 6.9 3.9 3.3

Energy services(1)

162.281 163.566 168.231 6.4 3.7 2.9

Electricity(1)

173.568 173.266 176.861 2.7 1.9 2.1

Utility (piped) gas service(1)

133.654 137.633 143.902 15.1 7.7 4.6

Household furnishings and operations

109.824 108.437 109.988 -3.0 0.1 1.4
 

Apparel

130.743 124.428 119.924 -4.4 -8.3 -3.6
 

Transportation

208.662 211.250 210.671 1.8 1.0 -0.3

Private transportation

194.247 196.746 197.258 2.3 1.6 0.3

Motor fuel

177.044 187.493 190.908 12.9 7.8 1.8

Gasoline (all types)

176.296 186.767 190.162 12.9 7.9 1.8

Gasoline, unleaded regular(3)

174.233 184.836 188.631 13.7 8.3 2.1

Gasoline, unleaded midgrade(3)(4)

189.260 198.637 200.508 9.5 5.9 0.9

Gasoline, unleaded premium(3)

192.314 202.140 202.837 8.3 5.5 0.3
 

Medical care

470.983 470.574 470.698 5.6 -0.1 0.0
 

Recreation(5)

120.142 121.092 121.369 2.5 1.0 0.2
 

Education and communication(5)

143.287 143.374 144.266 0.6 0.7 0.6
 

Other goods and services

416.035 415.073 414.381 1.7 -0.4 -0.2
 

Commodity and service group

 
 

All items

264.738 265.203 265.421 2.1 0.3 0.1

Commodities

185.603 184.900 184.676 0.1 -0.5 -0.1

Commodities less food and beverages

141.936 140.865 140.641 0.1 -0.9 -0.2

Nondurables less food and beverages

178.577 177.426 177.128 2.4 -0.8 -0.2

Durables

95.037 94.128 93.993 -3.9 -1.1 -0.1

Services

331.709 333.074 333.634 3.0 0.6 0.2
 

Special aggregate indexes

 
 

All items less medical care

255.779 256.279 256.501 1.9 0.3 0.1

All items less shelter

225.612 225.624 225.848 1.4 0.1 0.1

Commodities less food

146.208 145.202 144.938 0.1 -0.9 -0.2

Nondurables

219.313 218.781 218.527 1.1 -0.4 -0.1

Nondurables less food

183.239 182.221 181.856 2.2 -0.8 -0.2

Services less rent of shelter(2)

307.882 309.062 310.022 2.6 0.7 0.3

Services less medical care services

320.681 322.118 322.714 2.8 0.6 0.2

Energy

173.699 178.323 183.116 9.2 5.4 2.7

All items less energy

275.377 275.456 275.248 1.7 0.0 -0.1

All items less food and energy

280.459 280.534 280.307 2.0 -0.1 -0.1

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.
 

Note: Index applies to a month as a whole, not to any specific date.
The New York-Northern New Jersey-Long Island, NY-NJ-CT-PA consolidated area comprises the five boroughs of New York City, Nassau, Suffolk, Westchester, Rockland, Putnam, Dutchess, and Orange Counties in New York State; Bergen, Essex, Hudson, Hunterdon, Mercer, Monmouth, Middlesex, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren Counties in New Jersey; Fairfield County and parts of Litchfield, New Haven, and Middlesex Counties in Connecticut; and Pike County in Pennsylvania.
 

 

Last Modified Date: Wednesday, January 18, 2017