KANSAS CITY – Prices in the Midwest Region, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased 0.1 percent in August, the U.S. Bureau of Labor Statistics reported today.
The August increase was influenced by a 0.3-percent rise in the all items less food and energy index, with higher prices for owners’ equivalent rent of residences contributing most to the increase. The energy index and food index both fell in August, decreasing 1.3 and 0.1 percent, respectively.
Over the last 12 months, the CPI-U rose 2.6 percent. The index for all items less food and energy advanced 3.2 percent over the year, while food prices increased 1.8 percent. Energy prices declined 2.6 percent, largely the result of decreasing prices for gasoline. (See chart 1.)
Food
Food prices fell 0.1 percent for the month of August. Prices for food at home (grocery store prices) declined 0.3 percent, while prices for food away from home (restaurant, cafeteria, and vending purchases) increased 0.3 percent for the same period. Within the food at home category, the index for fruits and vegetables contributed most to the decline (-1.4 percent) but decreasing prices for dairy and related products (-0.9 percent) and nonalcoholic beverages and beverage materials (-0.6 percent) also contributed.
Over the year, food prices increased 1.8 percent. Prices for food away from home rose 3.5 percent since a year ago, and prices for food at home advanced 0.7 percent, led by a 2.3-percent rise in the meats, poultry, fish, and eggs index.
Energy
The energy index decreased 1.3 percent over the month. The decrease was almost entirely due to lower prices for gasoline (-2.3 percent), but falling prices for natural gas service (-2.0 percent) also contributed. Electricity prices increased 0.5 percent over the same period.
Energy prices declined 2.6 percent over the year, largely due to lower prices for gasoline (-7.7 percent). Rising prices for electricity (+3.5 percent) and natural gas service (+0.8 percent) partly offset the decline.
All items less food and energy
The index for all items less food and energy advanced 0.3 percent in August. Component indexes contributing most to the increase included owners’ equivalent rent of residences (+0.7 percent), rent of primary residences (+0.5 percent), apparel (+0.9 percent), and education and communication (+0.3 percent). These advances were partially offset by lower prices for lodging away from home, used cars and trucks (-0.8 percent), and household furnishings and operations (-0.3 percent).
Over the year, the index for all items less food and energy rose 3.2 percent. The indexes for shelter (+6.3 percent) and other goods and services (+6.8 percent) contributed most to the increase. Declining prices for used cars and trucks (-9.6 percent) and household furnishings and operations (-1.2 percent) partially offset the rise.