Bureau of Labor Statistics
FOR FURTHER INFORMATION: FOR RELEASE: Cheryl Abbot, Regional Economist November 19, 2008 (214) 767-6970 http://www.bls.gov/ro6/home.htm CONSUMER PRICE INDEX FOR HOUSTON-GALVESTON-BRAZORIA OCTOBER 2008 Area Prices Decline During September and October Prices in the Houston-Galveston-Brazoria area fell 0.8 percent during September and October, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Regional Commissioner Stanley W. Suchman noted that this was the second consecutive decline and was again primarily the result of lower transportation costs. During the year ended in October 2008, overall prices increased 3.4 percent, below the annual gains of 4.9 percent posted in both June and August. These data are based on the Consumer Price Index for All Urban Consumers (CPI-U). 2-Month and 12-Month Percent Change Ended October 2008 CPI-U by Selected Major Category for Houston-Galveston-BrazoriaThe transportation index decreased 7.1 percent in September and October, the sharpest two-month decline since the same period in 2006. The biggest factor in the latest decline was lower gasoline prices which fell 16.6 percent. The average price for a gallon of gasoline in the Houston area stood at $3.118 in October. Also contributing to the bimonthly transportation decline were lower prices for new and used motor vehicles, as well as lower airline fares. Over the year, gasoline costs increased 13.9 percent, but car prices and airline fares declined. As a result of these offsetting movements, the transportation index slipped 0.1 percent during the last 12 months, a notable change from August 2008 when transportation costs rose 8.0 percent over the year. The other major category to record lower prices in September and October was apparel. Clothing costs fell 1.2 percent during the period after rising 5.2 percent in July and August. Price movements were mixed in the latest period, but lower charges for a number of men's and women's apparel items and jewelry offset higher charges for boys' and girls' clothing. During the last 12 months apparel costs fell 2.6 percent. Higher prices within all but one of the remaining categories partially countered the September and October apparel and transportation declines. The housing index contributed the largest offset as prices rose 1.1 percent during the period after falling 0.5 percent in July and August. Owners' equivalent rent (homeowners' costs) increased 1.4 percent and rent of a primary residence (renters' costs) rose 0.7 percent in September and October. Prices for household furnishings and operations also advanced, up 0.8 percent. In contrast, the index for household energy fell 1.6 percent during the bimonthly period mainly due to a 9.9-percent decline in charges for natural gas service. On an annual basis, natural gas costs climbed 18.0 percent, electricity prices increased 8.5 percent, household furnishings and operations increased 8.1 percent, and shelter costs rose 3.8 percent. Combined, these movements left total housing costs 5.2 percent above a year ago. The food and beverages index increased 0.9 percent in the latest two-month period after advancing 1.7 percent in the previous period. Prices for food away from home (restaurant meals) rose 1.2 percent while prices for food at home (groceries) rose 0.8 percent. Costs for alcoholic beverages also contributed with a 0.6-percent gain. Grocery store price increases were widespread, but of particular note were those for bakery products such as bread and cookies, ground beef, carbonated beverages, and fats and oils. Over the year, grocery costs increased 9.0 percent and prices for restaurant meals advanced 6.5 percent, but costs for alcoholic beverages slipped 0.1 percent. The total food and beverages index rose 7.3 percent over the year, nearly twice the 3.8-percent annual gain registered in October 2007. The largest two-month increase among the major categories was registered for other goods and services which includes such diverse items as cigarettes, personal care products, dry cleaning, and financial services. Prices for other goods and services rose 2.3 percent in September and October and were 7.1 percent higher than a year ago. The education and communication index rose 1.3 percent in September and October after two consecutive bimonthly gains of 0.2 percent. The latest increase reflected higher costs for tuition and other school fees. During the last 12 months, education and communication prices increased 3.4 percent. On average, price movements in the two remaining major categories were minimal during September and October. Costs for medical care increased 0.3 percent in the latest period, as higher charges for prescription drugs more than offset lower charges for nonprescription drugs and supplies. During the last 12 months, medical care costs rose 1.7 percent, well below last October's 6.0-percent annual gain. The recreation index was unchanged during the bimonthly period as lower prices for televisions and cable and satellite services were balanced by sharply higher charges for pets and pet products. Over the year, the cost of recreation fell 1.3 percent. The CPI-U for the Houston-Galveston-Brazoria area stood at 191.140 on the 1982-84=100 reference base, meaning that a market basket of goods and services that averaged $100.00 in 1982-84 would have cost $191.14 in October 2008. The Houston-Galveston-Brazoria Consolidated Metropolitan Statistical Area (CMSA) includes Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller Counties. Local area CPI indexes are by-products of the national CPI program. Because each local area index is a small subset of the national index, the sample size is smaller and therefore 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. Next Release Date: November 2008 Consumer Price Indexes for Energy, Food At Home, and Shelter for Houston-Galveston-Brazoria will be released on December 16, 2008.
Last Modified Date: November 19, 2008
