Midwest consumer prices drop for second month

The Midwest Consumer Price Index saw its second straight month of decline, dropping 0.2 percent in August, according to the U.S. Bureau of Labor Statistics.

The regional figure landed at nearly 226.59 last month, according to a news release.

The CPI – which shows price changes for energy, food and all other items – is measured in comparison to a base period of 1982-84. A typical market basket of goods and services that cost $100 in 1982-84 cost $226.59 last month. The index is not seasonally adjusted, and items are weighted based on their spending significance in certain areas. The Midwest region comprises 12 states, including Missouri, Iowa and Kansas.

The BLS attributed the decrease in consumer prices largely to a drop in the cost of motor fuel.

Within the energy index, which fell 2.6 percent in August, motor fuel prices decreased 3.8 percent compared to June. Costs for piped gas service were 4 percent lower, while prices for electricity were little changed, dropping 0.1 percent. Despite the monthly decline, the energy index rose 0.8 percent compared to August 2013. Costs for electricity increased 5.7 percent and piped gas service rose 10.4 percent for the year.

The food index was nearly flat in July, registering a 0.3 percent increase. The index for food at home rose 0.4 percent and costs for food away from home were 0.2 percent higher. Year over year, the food index advanced 2.8 percent.

The index for all other items was little changed in August, due to offsetting movements. Components registering higher prices over the month included a 1.3 percent bump in apparel and a 0.5 percent nudge to the education and communication index. In contrast, among the expenditure categories posting lower prices over the month was household furnishings and operations, down 0.9 percent, according to the release.

Compared to August 2013, last month's Midwest CPI rose 1.6 percent, according to the BLS.