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Wednesday, January 18, 2017

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Consumer Price Index, Phoenix – Second Half 2016

Area prices were up 1.6 percent over the past six months, up 1.8 percent from a year ago

Prices in the Phoenix Area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased 1.6 percent in the second half of 2016, 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 electricity and gasoline. (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 advanced 1.8 percent.  (See chart 1 and table A.) Energy prices dropped 4.8 percent, largely the result of a decrease in the price of gasoline. The index for all items less food and energy rose 2.8 percent over the year. (See table 1.)

Food

Food prices decreased 0.6 percent in the second half of 2016. (See table 1.) Prices for food at home decreased 1.9 percent, but prices for food away from home rose 1.3 percent for the same period.

Over the year, food prices rose 0.8 percent. Prices for food away from home advanced 4.4 percent, but prices for food at home declined 1.7 percent from a year ago.

Energy

The energy index increased 7.6 percent since the first half of 2016. The increase was mainly due to higher prices for electricity (9.8 percent). Prices for gasoline advanced 7.0 percent, but prices for natural gas service decreased 6.5 percent for the same period.

Energy prices decreased 4.8 percent over the year, largely due to lower prices for gasoline (-9.9 percent). Prices paid for natural gas service decreased 12.9 percent, but prices for electricity increased 0.9 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 shelter (2.1 percent) and medical care (1.1 percent) were partially offset by lower prices for household furnishings and operations (-3.2 percent) and apparel (-0.9 percent).

Over the year, the index for all items less food and energy rose 2.8 percent. Components contributing to the increase included apparel (5.3 percent) and shelter (4.2 percent). Partly offsetting the increases were price declines in household furnishings and operations (-2.8 percent) and recreation (-1.6 percent).

Table A . Phoenix CPI-U semi-annual and annual percent changes (not seasonally adjusted)
Month 2011 2012 2013 2014 2015 2016
Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual Semi-annual Annual

First Half

2.1 2.2 1.6 2.8 1.1 1.2 1.2 1.5 -0.7 -0.2 0.3 1.4

Second Half

1.2 3.3 0.1 1.7 0.2 1.3 0.5 1.8 1.1 0.5 1.6 1.8

The First Half of 2017 Consumer Price Index for the Phoenix-Mesa is scheduled to be released on July 14, 2017.


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/homch17_a.htm.

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 Phoenix-Mesa metropolitan area covered in this release consists of Maricopa and Pinal Counties in the State of Arizona.

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

Phoenix-Mesa, AZ (1982-84=100 unless otherwise noted)
Item and Group

 
Semiannual average indexes
 
Percent change to
2nd half 2016 from-
2nd half
2015
1st half
2016
2nd half
2016
2nd half
2015
1st half
2016

Expenditure category

 
 

All items

128.749 129.103 131.112 1.8 1.6

All items (1967=100)

- - - - -

Food and beverages

141.061 142.873 142.300 0.9 -0.4

Food

142.393 144.322 143.468 0.8 -0.6

Food at home

145.905 146.239 143.493 -1.7 -1.9

Food away from home

138.358 142.576 144.384 4.4 1.3

Alcoholic beverages

127.055 127.623 130.346 2.6 2.1

Housing

127.442 128.624 131.331 3.1 2.1

Shelter

126.905 129.558 132.291 4.2 2.1

Rent of primary residence

130.174 133.759 137.739 5.8 3.0

Owners' equiv. rent of residences(1)

126.514 128.513 131.200 3.7 2.1

Owners' equiv. rent of primary residence(1)

126.514 128.513 131.200 3.7 2.1

Fuels and utilities

169.931 160.345 170.170 0.1 6.1

Household energy

179.485 165.222 178.321 -0.6 7.9

Energy services

179.474 165.134 178.296 -0.7 8.0

Electricity

192.118 176.543 193.853 0.9 9.8

Utility (piped) gas service

115.200 107.349 100.348 -12.9 -6.5

Household furnishings and operations

100.249 100.618 97.409 -2.8 -3.2

Apparel

133.609 141.995 140.687 5.3 -0.9

Transportation

114.444 110.626 114.466 0.0 3.5

Private transportation

115.882 111.228 115.503 -0.3 3.8

Motor fuel

196.534 165.364 177.097 -9.9 7.1

Gasoline (all types)

196.558 165.496 177.103 -9.9 7.0

Gasoline, unleaded regular(2)

197.441 164.784 176.860 -10.4 7.3

Gasoline, unleaded midgrade(2)(3)

204.664 176.550 187.091 -8.6 6.0

Gasoline, unleaded premium(2)

195.985 170.991 180.959 -7.7 5.8

Medical care

163.405 164.617 166.428 1.9 1.1

Recreation(4)

113.009 111.256 111.215 -1.6 0.0

Education and communication(4)

120.695 121.882 123.091 2.0 1.0

Other goods and services

141.141 142.021 143.996 2.0 1.4
 

Commodity and service group

 
 

All Items

128.749 129.103 131.112 1.8 1.6

Commodities

118.771 117.913 118.075 -0.6 0.1

Commodities less food & beverages

107.380 105.242 105.787 -1.5 0.5

Nondurables less food & beverages

136.695 132.402 134.225 -1.8 1.4

Durables

82.144 81.877 81.498 -0.8 -0.5

Services

135.529 136.704 140.033 3.3 2.4
 

Special aggregate indexes

 
 

All items less medical care

126.723 127.028 129.051 1.8 1.6

All items less shelter

129.592 128.666 130.313 0.6 1.3

Commodities less food

108.140 106.117 106.746 -1.3 0.6

Nondurables

139.106 137.926 138.429 -0.5 0.4

Nondurables less food

135.903 132.030 133.933 -1.4 1.4

Services less rent of shelter(1)

146.370 145.459 149.494 2.1 2.8

Services less medical care services

132.354 133.541 136.956 3.5 2.6

Energy

187.222 165.687 178.233 -4.8 7.6

All items less energy

125.340 126.969 128.391 2.4 1.1

All items less food and energy

122.639 124.242 126.031 2.8 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.
 

 

Last Modified Date: Wednesday, January 18, 2017