Prices in the Portland Area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased 1.4 percent in the second half of 2017, the U.S. Bureau of Labor Statistics reported today. (See table A.) Assistant Commissioner for Regional Operations Richard Holden noted that this latest six-month increase was influenced by higher prices for shelter and medical care. (Data in this report are not seasonally adjusted. Accordingly, six-month-to-six-month changes may reflect seasonal influences.)

Over the last 12 months, the CPI-U rose 3.9 percent. (See chart 1 and table A.) Energy prices increased 7.1 percent, largely the result of an increase in the price of gasoline. The index for all items less food and energy advanced 4.1 percent over the year. (See table 1.)

Food

Food prices increased 0.8 percent in the second half of 2017. (See table 1.) Prices for food away from home increased 1.0 percent, and prices for food at home increased 0.6 percent for the same period.

Over the year, food prices increased 1.8 percent. Prices for food away from home increased 4.0 percent since a year ago, and prices for food at home edged up 0.1 percent.

Energy

The energy index increased 2.7 percent since the first half of 2017. The increase was mainly due to higher prices for gasoline (4.6 percent). Prices for electricity increased 0.3 percent, and prices for natural gas service inched up 0.1 percent for the same period.

Energy prices advanced 7.1 percent over the year, largely due to higher prices for gasoline (12.6 percent). Prices paid for electricity advanced 0.9 percent, but prices for natural gas service moved down 1.3 percent during the past year.

All items less food and energy

The index for all items less food and energy rose 1.4 percent in the latest six-month period. Higher prices for medical care (2.6 percent) and shelter (2.5 percent) were partially offset by lower prices for recreation (-1.9 percent) and apparel (-1.1 percent).

Over the year, the index for all items less food and energy advanced 4.1 percent. Components contributing to the increase included shelter (7.0 percent), medical care (6.0 percent), and household furnishings and operations (1.6 percent). Partly offsetting the increases were price declines in apparel (-2.7 percent), education and communication (-1.3 percent), and recreation (-1.1 percent).

Table A. Portland CPI-U semi-annual and annual percent changes (not seasonally adjusted)

Month	2012		2013		2014		2015		2016		2017
	Semi-annual	Annual	Semi-annual	Annual	Semi-annual	Annual	Semi-annual	Annual	Semi-annual	Annual	Semi-annual	Annual
First Half	1.2	2.5	1.3	2.2	1.0	2.6	0.1	1.3	0.7	1.7	2.5	4.4
Second Half	0.9	2.1	1.5	2.8	1.2	2.3	1.0	1.1	1.8	2.6	1.4	3.9

This release marks the final publication of the Portland-Salem Consumer Price Index series.

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

The Portland-Salem, OR, WA metropolitan area covered in this release consists of Clackamas, Columbia, Marion, Multnomah, Polk, Washington, and Yamhill Counties in the State of Oregon and Clark County in the State of Washington.

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

Portland-Salem, OR-WA (1982-84=100 unless otherwise noted)

Item and Group	Semiannual average indexes			Percent change to 2nd half 2017 from-
	2nd half 2016	1st half 2017	2nd half 2017	2nd half 2016	1st half 2017
Expenditure category
All items	251.710	258.055	261.621	3.9	1.4
All items (1967=100)	736.903	755.477	765.918	-	-
Food and beverages	232.822	235.531	236.525	1.6	0.4
Food	234.769	237.074	238.886	1.8	0.8
Food at home	215.919	214.855	216.046	0.1	0.6
Food away from home	265.226	272.942	275.753	4.0	1.0
Alcoholic beverages	213.679	220.467	213.220	-0.2	-3.3
Housing	262.228	271.955	278.079	6.0	2.3
Shelter	312.818	326.375	334.669	7.0	2.5
Rent of primary residence	314.295	327.628	332.248	5.7	1.4
Owners' equiv. rent of residences(1)	325.023	339.175	348.091	7.1	2.6
Owners' equiv. rent of primary residence(1)	325.023	339.175	348.091	7.1	2.6
Fuels and utilities	262.894	265.703	268.961	2.3	1.2
Household energy	204.951	205.832	206.452	0.7	0.3
Energy services	251.943	252.429	253.127	0.5	0.3
Electricity	299.251	301.129	302.087	0.9	0.3
Utility (piped) gas service	155.421	153.186	153.366	-1.3	0.1
Household furnishings and operations	105.048	106.024	106.726	1.6	0.7
Apparel	126.708	124.727	123.341	-2.7	-1.1
Transportation	219.120	228.257	231.246	5.5	1.3
Private transportation	223.478	230.249	235.863	5.5	2.4
Motor fuel	215.924	232.403	243.201	12.6	4.6
Gasoline (all types)	217.892	234.579	245.400	12.6	4.6
Gasoline, unleaded regular(2)	214.414	230.677	241.302	12.5	4.6
Gasoline, unleaded midgrade(2)(3)	188.367	203.476	212.958	13.1	4.7
Gasoline, unleaded premium(2)	207.417	224.017	234.411	13.0	4.6
Medical care	531.392	548.762	563.254	6.0	2.6
Recreation(4)	109.339	110.304	108.182	-1.1	-1.9
Education and communication(4)	114.882	112.746	113.411	-1.3	0.6
Other goods and services	474.017	474.724	478.280	0.9	0.7
Commodity and service group
All Items	251.710	258.055	261.621	3.9	1.4
Commodities	175.305	177.202	177.421	1.2	0.1
Commodities less food & beverages	147.438	148.940	148.774	0.9	-0.1
Nondurables less food & beverages	181.847	184.607	185.642	2.1	0.6
Durables	110.644	110.948	109.702	-0.9	-1.1
Services	328.749	339.628	346.616	5.4	2.1
Special aggregate indexes
All items less medical care	239.088	244.967	248.096	3.8	1.3
All items less shelter	227.889	231.246	232.849	2.2	0.7
Commodities less food	149.794	151.517	151.049	0.8	-0.3
Nondurables	205.991	208.704	209.710	1.8	0.5
Nondurables less food	183.230	186.310	186.641	1.9	0.2
Services less rent of shelter(1)	353.409	360.250	365.316	3.4	1.4
Services less medical care services	313.836	324.034	330.361	5.3	2.0
Energy	210.410	219.359	225.244	7.1	2.7
All items less energy	258.442	264.668	268.100	3.7	1.3
All items less food and energy	264.916	271.976	275.758	4.1	1.4
Footnotes (1) Index is on a December 1982=100 base. (2) Special index based on a substantially smaller sample. (3) Indexes on a December 1993=100 base. (4) Indexes on a December 1997=100 base.
- Data not available.