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Consumer Price Index Detroit-Ann Arbor-Flint, MI CMSA June 2008

The Detroit-Ann Arbor-Flint, MI Consumer Price Index for All Urban Consumers (CPI-U) increased 1.1 percent from April to June, the U.S. Department of Labor’s Bureau of Labor Statistics reported today. This follows a 1.4 percent increase in the February-April period. Over the past 12 months, retail price inflation in the Detroit area, as measured by the all items CPI-U was 3.0 percent. This was more than the 2.4 percent increase reported over the previous 12-month period ending in June 2007. The June 2008 CPI-U for Detroit was 207.593 (1982-84=100).

Jay A. Mousa, regional commissioner for the Bureau in Chicago, stated that an increase in gasoline prices was the major contributing factor in the latest bimonthly gain in the Detroit area all items CPI-U. Mr. Mousa added that the components for food and beverages, housing, and education and communication also rose over the past two months, but with less impact. Partially offsetting these increases were declines in the components for apparel, recreation, medical care, and other goods and services.

The transportation component gained 6.2 percent as gasoline prices continued their climb, gaining 15.6 percent from April to June. Compared with last June, gasoline prices were up 27.1 percent. For the 12-month period ended in June 2008, transportation costs in general were up 11.0 percent. In the three previous one-year periods ending in June, transportation costs rose an average of 5.6 percent.

Food and beverage prices rose 0.8 percent during this bimonthly period. The food at home index (grocery food items) gained 1.3 percent while the food away from home index (restaurant meals and vending machine purchases, for example) rose 0.4 percent. The cost of alcoholic beverages was little changed from April to June. During the past 12-months, food and beverage prices gained 2.0 percent. Grocery food costs increased 1.7 percent during the year. This annual increase in grocery food costs followed a 5.9 percent rise in the prior one-year period ending in June 2007. The cost of food away from home gained 2.7 percent over the year. The alcoholic beverages index was 0.2 percent higher than in June 2007.

The housing component in the Detroit area rose 0.3 percent from April-June. Increases in the household fuels and utilities index (1.9 percent) and household furnishing and operations index (1.1 percent) were only partially offset by a 0.1 percent decline in the heavily weighted shelter index. Within the household fuels and utilities category, the electricity index rose 2.8 percent and the utility (piped) gas service index rose 1.0 percent from April-June. On an annual basis, the housing component gained 1.5 percent. The shelter index gained 0.2 percent for the year while the index for electricity was up 2.4 percent and the utility (piped) gas service index rose 14.4 percent. The household furnishing and operations index moved ahead 3.1 percent over the past 12 months.

The education and communication component rose 0.4 percent from April, but was 2.3 percent higher for the year. The other goods and services component fell 0.2 percent from April to June and over the past 12 months was up 0.2 percent. The medical care component declined 0.3 percent during this bimonthly period and was 0.7 percent lower than a year ago. Medical care costs rose an average 4.9 percent over the previous four June-June periods.

Recreation costs in the Detroit area fell 1.9 percent from April to June. For the year, recreation costs were down 0.4 percent. This recent annual decline followed a 5.4 percent decrease in the previous June-June period.

The apparel component slid 5.4 percent during the bimonthly period, reflecting end-of-season sales on spring and summer merchandise. This latest decline was greater than the 2.0 percent bimonthly drop reported for the same time period in 2007. On an annual basis, the apparel component was down 2.2 percent.

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Scheduled release date for the June 2008 CPI: Thursday, August 14, 2008

CPI HOTLINE SERVICE PROVIDES LATEST INDEXES 24 HOURS A DAY

The all items CPI-U and CPI-W for the U.S. City Average,  and the Detroit area are available to the public 24 hours a day, 7 days a week through the Bureau's CPI Hotline service. This recorded message also provides percent changes from the prior period and from a year earlier, as well as the scheduled release date for the next CPI issuance. The Hotline number in Detroit is (313) 226-7558.

BRIEF EXPLANATION OF THE CPI

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 87 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 32 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. Prices are collected in 87 urban areas across the country from about 50,000 housing units and approximately 23,000 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. Prices of food, fuels, and a few other items are obtained every month in all 87 locations. Prices of most other commodities and services are collected every month in the three largest geographic areas and every other month in other areas. Prices of most goods and services are obtained by personal visits of the Bureau's trained representatives.

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. Separate indexes are also published by size of city, by region of the country, for cross-classifications of regions and population-size classes, and for 27 local areas. Area indexes do not measure differences in the level of prices among cities; they only measure the average change in prices for each area since the base period.

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.

 

Last Modified Date: July 16, 2008