Midwest consumer prices rise despite energy drop

Despite a 9 percent decrease in energy costs, the Midwest Consumer Price Index increased 0.6 percent in August compared with the same month a year ago, according to the U.S. Bureau of Labor Statistics’ latest data.

The CPI – which reflects 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 $227.10 last month. The index is not seasonally adjusted, and items are weighted based on their spending significance in certain areas, according to the BLS.

The largest contributor to the year-to-year energy index decrease was a 17.4 percent drop in motor fuel costs, as well as a 1.6 percent fall in piped utility gas service prices and a 0.3 percent dip in electricity, according to a news release.

Food prices were down 0.1 percent compared with August 2015, as prices for food at home registered an 11th consecutive decrease. Costs for food away from home moved up 2.6 percent, nearly offsetting that drop.

The index for all other items ticked up 0.1 percent. Higher prices in August included apparel, up 2 percent, medical care services, up 0.6 percent, and residential rent, up 0.2 percent, according to the release.