BLS issues July Consumer Price Index information

Retail prices in the Midwest increased 0.2 percent in July, the Bureau of Labor Statistics reported Aug. 17.

Increasing prices for transportation, housing and other goods and services more than offset a largely seasonal decline in apparel prices, according to a bureau press release.

Because regional CPI data are not adjusted for seasonal price variation, the bureau warns that consumers and businesses should be cautious in drawing conclusions about long-term retail price trends from short-term changes in the Consumer Price Index.

The Midwest Consumer Price Index for All Urban Consumers stood at 162.9 in July, an increase of 1.9 percent from July 1998.

A typical market basket of goods and services that cost $100 in the 1982-84 base period cost $162.90 in July 1999.

Transportation prices rose 1.1 percent in July, as motor fuel prices rebounded from their dip in June. For the month, motor fuel prices rose 4.5 percent, while prices for new and used motor vehicles edged down 0.1 percent.

For the year, transportation prices were up 2.2 percent as motor fuel prices rose 7.3 percent.

Housing prices, which account for approximately 40 percent of the Consumer Price Index, rose 0.3 percent in July. Shelter costs edged up 0.2 percent as both rent of primary residence and owner's equivalent rent rose 0.2 percent. Household fuel and utility prices rose 0.9 percent for the month.

The overall increase in housing prices was moderated slightly by a 0.3 percent decline in prices for household furnishings and operations.

For the year, housing costs were up 1.6 percent. Shelter costs, including rent and owner's equivalent rent, rose 2.6 percent for the year, while fuels and utilities prices dropped 0.5 percent.

Energy costs, including both household fuels and motor fuels, rose 2.5 percent for the month.

Excluding the impact of energy costs, the index was up 0.1 percent in the Midwest in July. For the last year, energy costs were up 2.4 percent, as rising prices for motor fuels and utility natural gas service more than offset declining prices for electricity.

Other goods and services prices rose 1.2 percent for the month and 8.1 percent for the year. The annual increase, more than four times the increase in the all-items index, was driven primarily by price increases for tobacco and smoking products.

Food and beverage prices rose 0.2 percent in July. Food-at-home prices were unchanged. Food-away-from-home prices rose 0.3 percent and alcoholic beverage prices jumped 1 percent for the month. For the year, food and beverage prices were up 2.1 percent, led by a 3 percent increase in alcoholic beverage prices.

Medical care prices rose 0.3 percent in July. Medical care services prices and professional services prices both rose 0.4 percent. Medical care commodities prices edged up 0.1 percent for the month. Over the year, medical care prices rose 3.7 percent.

Apparel prices dropped 1.9 percent in July, resulting largely from seasonal price declines. Apparel prices have declined an average of 1.8 percent in July in each of last five years. For the year, apparel prices declined 2.6 percent. Apparel prices have moved in a narrow band for most of the last decade and are now at a level not significantly different than that of July 1991.

Recreation costs edged down 0.2 percent and education and communication costs were unchanged in July. For the year, recreation prices rose 1.6 percent, and education and communication prices increased 1 percent.

The index for Midwest metropolitan areas with populations in excess of 1.5 million increased 2.1 percent for the year, while areas with 50,000 to 1.5 million in population experienced a 1.7 percent increase. The Consumer Price Index for nonmetropolitan areas, with 50,000 or fewer people, rose 2.4 percent.