Midwest region consumer price index released for October

The Consumer Price Index for the Midwest was nearly unchanged, up 0.1 percent in October, the U.S. Department of Labor’s Bureau of Labor Statistics reported today. According to Regional Commissioner Jay A. Mousa, movements among the major expenditure categories were varied, but more than 80 percent of the overall movement was attributable to higher prices for transportation and lower prices for housing. Since October 2008 the all items index declined 0.2 percent—its eleventh consecutive over-the-year decrease.

Among the eight major expenditure categories, transportation had the greatest impact on the October 2009 Midwest CPI. Transportation costs advanced 1.5 percent following a decrease of 1.3 percent in September. Higher prices for new and used motor vehicles accounted for nearly half of the upturn in the transportation index, rising 1.9 percent in October. This was the largest one-month increase recorded for new and used motor vehicles since publication began in 1998. Prices for new vehicles rose 2.0 percent and prices for used cars and trucks advanced 2.5 percent. Higher prices for motor fuel also contributed to the monthly increase in the transportation index, advancing 1.3 percent. Overall, the transportation index decreased 3.9 percent since October 2008, registering its twelfth consecutive month of over-the-year decline. Prices for motor fuel were 17.5 percent lower than one year ago. In contrast, the index for new and used motor vehicles advanced 2.3 percent over the year, as prices for new vehicles rose 3.5 percent and prices for used cars and trucks increased 1.1 percent.

The housing index had the next largest impact on the October all items index with its 0.5 percent decrease partially offsetting the increase in the transportation index. Falling prices in the housing index were primarily due to lower costs for electricity. Electricity prices, which typically decline in October reflecting a shift in seasonal rate schedules, fell 8.7 percent over the month, while utility (piped) gas service costs increased 2.7 percent. Shelter costs were little changed over the month and prices for household furnishings and operations decreased 0.4 percent. From October 2008 to October 2009, the housing index decreased 0.6 percent largely as a result of a 30.0-percent decline in utility (piped) gas service costs. Electricity prices rose 2.9 percent over the year, shelter costs were up 1.2 percent, and household furnishings and operations costs were down 1.0 percent.

Table A. Percent changes in the Midwest CPI-U, (not seasonally adjusted)

Changes from preceding month

12 mo.

Expenditure

2009

ended

Category

Apr.

May

June

July

Aug.

Sep.

Oct.

Oct. ‘09

All items

0.2

0.4

1.1

-0.3

0.4

0.0

0.1

-0.2

Food & beverages

-.1

-.2

.1

.1

-.1

.1

-.1

-.1

Housing

-.4

-.1

1.0

.3

.1

-.3

-.5

-.6

Apparel

1.6

-.8

-2.7

-2.2

2.3

4.0

.6

1.3

Transportation

.8

3.1

4.7

-2.0

1.5

-1.3

1.5

-3.9

Medical care

.2

.8

-.1

.2

.1

.4

.4

3.9

Recreation

-.3

-.1

.0

.2

.0

.3

-.6

-.1

Education &

communication

.1

.0

.1

.2

.8

1.1

.1

2.7

Other goods &

services

3.5

.0

.2

.1

-.5

1.2

.0

7.7

Each of the remaining six major expenditure categories contributed little to the movement of the October all items index. Three of these six expenditure categories—recreation, medical care, and apparel—together accounted for around fifteen percent of the movement. Among these, prices for recreation had the largest impact and were down 0.6 percent, medical care costs increased 0.4 percent, and prices for apparel were up 0.6 percent. From October 2008 to October 2009 prices for recreation were little changed, medical care costs advanced 3.9 percent, and apparel prices were 1.3 percent higher.

The remaining three expenditure categories—food and beverages, education and communication, and other goods and services—together accounted for less than four percent of the movement in the monthly index. The food and beverages and education and communication indexes registered little movement over the month, and prices for other goods and services were unchanged. From October 2008 to October 2009, prices for food and beverages were virtually unchanged, costs for education and communication rose 2.7 percent, and prices for other goods and services advanced 7.7 percent.

Energy prices, which include prices for motor fuel and household fuels, declined 1.7 percent in October. Costs for energy were 14.8 percent lower than one year ago. The special aggregate index for all items less energy was up 0.2 percent over the month and 1.6 percent over the year. Excluding the impact of food and energy prices, the Midwest CPI rose 0.3 percent over the month and was 2.0 percent higher than one year ago.

The Midwest Consumer Price Index for All Urban Consumers (CPI-U) stood at 205.706 in October 2009. A typical market basket of goods and services that cost $100.00 in the 1982-84 base period cost $205.71 in October 2009. Because regional CPI data are not adjusted for seasonal price variation, consumers and businesses should be cautious in drawing conclusions about long-term retail price trends from short-term changes in the regional indexes. The Midwest region is comprised of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.

Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods

Midwest (1982-84=100 unless otherwise noted)

Indexes Percent change from-

ITEM AND GROUP

Aug. Sep. Oct. Oct. Aug. Sep.

2009 2009 2009 2008 2009 2009

EXPENDITURE CATEGORY

All items.................................... 205.632 205.601 205.706 -0.2 0.0 0.1

All items (December 1977=100) ............... 334.574 334.524 334.695 - - -

Food and beverages.......................... 211.586 211.759 211.609 -.1 .0 -.1

Food....................................... 211.033 210.978 210.770 -.4 -.1 -.1

Food at home.............................. 204.623 204.522 204.131 -2.4 -.2 -.2

Food away from home....................... 220.777 220.787 220.826 2.1 .0 .0

Alcoholic beverages........................ 217.602 220.429 220.951 4.0 1.5 .2

Housing..................................... 198.001 197.349 196.318 -.6 -.8 -.5

Shelter.................................... 227.851 227.420 227.579 1.2 -.1 .1

Rent of primary residence (1)............. 220.188 220.342 220.537 1.6 .2 .1

Owners' equivalent rent of primary residence (1) (2) .................... 231.138 231.314 231.307 1.9 .1 .0

Fuels and utilities........................ 199.484 198.049 190.388 -9.1 -4.6 -3.9

Household energy.......................... 174.662 173.108 164.935 -11.6 -5.6 -4.7

Gas (piped) and electricity (1).......... 181.646 180.248 170.904 -11.1 -5.9 -5.2

Electricity (1)......................... 183.573 183.449 167.437 2.9 -8.8 -8.7

Utility (piped) gas service (1)......... 169.366 165.471 169.974 -30.0 .4 2.7

Household furnishings and operations....... 123.066 122.145 121.675 -1.0 -1.1 -.4

Apparel..................................... 111.068 115.505 116.156 1.3 4.6 .6

Transportation.............................. 184.815 182.493 185.290 -3.9 .3 1.5

Private transportation..................... 179.731 177.330 180.114 -3.9 .2 1.6

New and used motor vehicles (3)........... 93.343 93.456 95.200 2.3 2.0 1.9

New vehicles............................. 128.686 128.916 131.493 3.5 2.2 2.0

New cars and trucks (3) (4)............. 90.827 91.001 92.953 3.6 2.3 2.1

New cars (4)............................ 128.245 127.593 130.890 1.3 2.1 2.6

Used cars and trucks..................... 128.295 129.706 132.958 1.1 3.6 2.5

Motor fuel................................ 228.974 218.396 221.303 -17.5 -3.4 1.3

Gasoline (all types)..................... 229.338 218.179 221.103 -16.8 -3.6 1.3

Gasoline, unleaded regular (4).......... 228.202 216.716 219.433 -17.2 -3.8 1.3

Gasoline, unleaded midgrade (4) (5)..... 250.928 239.777 243.965 -15.7 -2.8 1.7

Gasoline, unleaded premium (4).......... 226.553 216.469 218.901 -16.7 -3.4 1.1

Medical care................................ 376.355 377.842 379.190 3.9 .8 .4

Medical care commodities................... 301.954 303.931 304.376 4.0 .8 .1

Medical care services...................... 401.123 402.365 404.080 3.8 .7 .4

Professional services..................... 344.246 345.179 345.609 4.0 .4 .1

Recreation (3).............................. 115.897 116.281 115.526 -0.1 -0.3 -0.6

Education and communication (3)............. 129.164 130.562 130.726 2.7 1.2 .1

Other goods and services.................... 358.693 362.922 363.018 7.7 1.2 .0

COMMODITY AND SERVICE GROUP

All items.................................... 205.632 205.601 205.706 -.2 .0 .1

Commodities................................. 167.582 167.505 168.232 -1.4 .4 .4

Commodities less food and beverages........ 145.240 145.057 146.147 -2.2 .6 .8

Nondurables less food and beverages....... 182.916 182.622 183.751 -3.7 .5 .6

Nondurables less food, beverages, and apparel.............................. 229.628 226.298 227.739 -5.3 -.8 .6

Durables.................................. 107.428 107.350 108.374 .1 .9 1.0

Services.................................... 245.363 245.381 244.830 .8 -.2 -.2

Rent of shelter (2) ....................... 234.149 233.682 233.838 1.1 -.1 .1

Transportation services.................... 258.983 258.613 261.720 2.7 1.1 1.2

Other services............................. 295.947 298.128 297.533 2.0 .5 -.2

SPECIAL AGGREGATE INDEXES

All items less medical care.................. 197.410 197.318 197.372 -.5 .0 .0

All items less food.......................... 204.647 204.620 204.778 -.1 .1 .1

All items less shelter....................... 199.736 199.852 199.938 -.7 .1 .0

Commodities less food........................ 147.696 147.612 148.683 -2.0 .7 .7

Nondurables.................................. 197.359 197.285 197.813 -1.9 .2 .3

Nondurables less food........................ 184.908 184.820 185.908 -3.2 .5 .6

Nondurables less food and apparel............ 227.679 224.998 226.339 -4.4 -.6 .6

Services less rent of shelter (2) ........... 271.612 272.196 270.790 .4 -.3 -.5

Services less medical care services.......... 233.272 233.216 232.537 .5 -.3 -.3

Energy....................................... 197.898 192.324 189.146 -14.8 -4.4 -1.7

All items less energy........................ 208.718 209.291 209.755 1.6 .5 .2

All items less food and energy.............. 208.916 209.612 210.208 2.0 .6 .3

COMMODITIES LESS FOOD AND ENERGY

commodities............................ 140.264 141.631 142.409 2.3 1.5 .5

Energy commodities......................... 228.179 217.683 221.052 -17.6 -3.1 1.5

Services less energy services.............. 253.835 254.014 254.457 1.8 .2 .2

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 Indexes on a December 1997=100 base.

4 Special index based on a substantially smaller sample.

5 Indexes on a December 1993=100 base.

- Data not available.

Regions defined as the four Census regions. Midwest includes Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.

NOTE: Index applies to a month as a whole, not to any specific date.