KANSAS CITY – Prices in the Midwest Region, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), fell 0.2% in December, the U.S. Bureau of Labor Statistics reported today.
The December decrease was a result of a 4.0% decline in energy costs, almost entirely driven by lower costs for gasoline. The index for all items less food and energy saw no change, while prices for food rose 0.1%.
Over the last 12 months, the CPI-U advanced 3.2%. The index for all items less food and energy rose 4.1% over the year, while the food index was up 2.4%. Energy prices declined 5.7%, largely the result of a decrease in the price of natural gas service.
Food
Food prices advanced 0.1 percent for the month of December. The index for food at home rose 0.2 percent, while prices for food away from home increased 0.1 percent for the same period. Within the food at home category, the leading contributors to the rise included nonalcoholic beverages and beverage materials (+1.1 percent) and other food at home (+0.3 percent). Price decreases in cereals and bakery products (-0.5 percent) somewhat offset these increases.
Over the year, food prices advanced 2.4 percent. Prices for food away from home increased 4.2 percent, and prices for food at home advanced 1.4 percent since a year ago. Increases within the food at home index were driven mainly by higher prices for other food at home (+2.9 percent) and cereals and bakery products (+2.7 percent).
Energy
The energy index decreased 4.0 percent over the month. The decrease was almost entirely due to lower prices for gasoline (-8.7 percent), but fuel oil price declines also contributed. The indexes for electricity and natural gas service advanced 0.3 percent and 0.5 percent, respectively, for the same period.
From December 2022 to December 2023, energy prices fell 5.7 percent. The decline was led by lower prices for natural gas service (-20.6 percent), but falling prices for gasoline (-4.7 percent) also contributed. Prices paid for electricity increased 2.9 percent during the past year.
All items less food and energy
The index for all items less food and energy was unchanged in December. The largest contributions to index increases included owners’ equivalent rent of residences (+0.5 percent), recreation (+0.5 percent), and rent of primary residence (+0.5 percent). These increases were entirely offset by declines, including household furnishings and operations (-0.8 percent) and apparel (-1.4 percent).
Over the year, the index for all items less food and energy rose 4.1 percent. The main components contributing to the increase included owners’ equivalent rent of residences (+6.6 percent), rent of primary residence (+6.4 percent), and other goods and services (+6.0 percent). Declining components included public transportation.