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Friday, July 14, 2017

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Consumer Price Index, Phoenix – First Half 2017

Area prices were up 1.2 percent over the past six months, up 2.7 percent from a year ago

Prices in the Phoenix Area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), rose 1.2 percent in the first half of 2017, the U.S. Bureau of Labor Statistics reported today. (See table A.) Assistant Commissioner for Regional Operations Richard Holden noted that the six-month increase was influenced by higher prices for shelter 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 2.7 percent.  (See chart 1 and table A.) Energy prices advanced 5.2 percent, largely the result of an increase in the price of gasoline. The index for all items less food and energy rose 3.0 percent over the year. (See table 1.)

Food

Food prices rose 0.9 percent in the first half of 2017. (See table 1.) Prices for food away from home advanced 3.2 percent, but prices for food at home declined 0.8 percent for the same period.

Over the year, food prices rose 0.3 percent. Prices for food away from home rose 4.5 percent since a year ago, but prices for food at home decreased 2.6 percent.

Energy

The energy index declined 2.2 percent since the second half of 2016. The decrease was mainly due to lower prices for electricity (-9.3 percent). Prices for gasoline increased 5.3 percent, and prices for natural gas service rose 5.8 percent in the same period.

Energy prices advanced 5.2 percent over the year, largely due to higher prices for gasoline (12.7 percent). Prices paid for natural gas service decreased 1.1 percent, and prices for electricity declined 0.4 percent during the past year.

All items less food and energy

The index for all items less food and energy advanced 1.5 percent in the latest six-month period. Higher prices for apparel (3.5 percent) and shelter (2.6 percent) were partially offset by lower prices for education and communication (-3.2 percent).

Over the year, the index for all items less food and energy rose 3.0 percent. Components contributing to the increase included shelter (4.8 percent) and medical care (2.5 percent). Partly offsetting the increases were price declines in household furnishings and operations (-3.9 percent) and education and communication (-2.2 percent).

Table A. Phoenix 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

1.6 2.8 1.1 1.2 1.2 1.5 -0.7 -0.2 0.3 1.4 1.2 2.7

Second Half

0.1 1.7 0.2 1.3 0.5 1.8 1.1 0.5 1.6 1.8    

The Second Half 2017 Consumer Price Index for the Phoenix-Mesa is scheduled to be released mid-January 2018.

Consumer Price Index Geographic Revision for 2018

In January 2018, BLS will introduce a new geographic area sample for the Consumer Price Index (CPI). This index will change to a bimonthly publication schedule beginning in February, 2018. The first indexes using the new structure will be published in February 2018. Additional information on the geographic revision is available at: www.bls.gov/cpi/georevision2018.htm.


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
1st half 2017 from-
1st half
2016
2nd half
2016
1st half
2017
1st half
2016
2nd half
2016

Expenditure category

 
 

All items

129.103 131.112 132.653 2.7 1.2

All items (1967=100)

- - - - -

Food and beverages

142.873 142.300 144.044 0.8 1.2

Food

144.322 143.468 144.695 0.3 0.9

Food at home

146.239 143.493 142.371 -2.6 -0.8

Food away from home

142.576 144.384 148.933 4.5 3.2

Alcoholic beverages

127.623 130.346 138.171 8.3 6.0

Housing

128.624 131.331 132.986 3.4 1.3

Shelter

129.558 132.291 135.788 4.8 2.6

Rent of primary residence

133.759 137.739 142.260 6.4 3.3

Owners' equiv. rent of residences(1)

128.513 131.200 133.941 4.2 2.1

Owners' equiv. rent of primary residence(1)

128.513 131.200 133.941 4.2 2.1

Fuels and utilities

160.345 170.170 160.370 0.0 -5.8

Household energy

165.222 178.321 164.452 -0.5 -7.8

Energy services

165.134 178.296 164.325 -0.5 -7.8

Electricity

176.543 193.853 175.817 -0.4 -9.3

Utility (piped) gas service

107.349 100.348 106.156 -1.1 5.8

Household furnishings and operations

100.618 97.409 96.713 -3.9 -0.7

Apparel

141.995 140.687 145.630 2.6 3.5

Transportation

110.626 114.466 116.847 5.6 2.1

Private transportation

111.228 115.503 117.884 6.0 2.1

Motor fuel

165.364 177.097 186.543 12.8 5.3

Gasoline (all types)

165.496 177.103 186.456 12.7 5.3

Gasoline, unleaded regular(2)

164.784 176.860 186.413 13.1 5.4

Gasoline, unleaded midgrade(2)(3)

176.550 187.091 196.927 11.5 5.3

Gasoline, unleaded premium(2)

170.991 180.959 189.371 10.7 4.6

Medical care

164.617 166.428 168.743 2.5 1.4

Recreation(4)

111.256 111.215 112.760 1.4 1.4

Education and communication(4)

121.882 123.091 119.143 -2.2 -3.2

Other goods and services

142.021 143.996 144.105 1.5 0.1
 

Commodity and service group

 
 

All Items

129.103 131.112 132.653 2.7 1.2

Commodities

117.913 118.075 119.344 1.2 1.1

Commodities less food & beverages

105.242 105.787 106.812 1.5 1.0

Nondurables less food & beverages

132.402 134.225 136.785 3.3 1.9

Durables

81.877 81.498 81.402 -0.6 -0.1

Services

136.704 140.033 141.763 3.7 1.2
 

Special aggregate indexes

 
 

All items less medical care

127.028 129.051 130.546 2.8 1.2

All items less shelter

128.666 130.313 130.877 1.7 0.4

Commodities less food

106.117 106.746 108.038 1.8 1.2

Nondurables

137.926 138.429 140.535 1.9 1.5

Nondurables less food

132.030 133.933 136.956 3.7 2.3

Services less rent of shelter(1)

145.459 149.494 148.886 2.4 -0.4

Services less medical care services

133.541 136.956 138.557 3.8 1.2

Energy

165.687 178.233 174.311 5.2 -2.2

All items less energy

126.969 128.391 130.234 2.6 1.4

All items less food and energy

124.242 126.031 127.975 3.0 1.5

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: Friday, July 14, 2017