Midwest prices up 0.4 percent in August CPI

The Consumer Price Index for the Midwest increased 0.4 percent in August, according to a press release from the United States Department of Labor's Bureau of Labor Statistics.

Regional Commissioner Bob Gaddie said that rising prices for transportation, apparel, and food and beverage accounted for most of the increase in the index. Over the year, the Midwest CPI was up 1.7 percent.

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

Transportation prices advanced 1.5 percent in August, after falling 0.5 percent in July. The increase in the transportation component was largely due to an 8.3 percent increase in motor fuel prices. Prices for new and used motor vehicles declined 0.6 percent, the fifth consecutive month of declining prices.

Over the year, transportation prices were up 2.9 percent as motor fuel prices rose 16.6 percent and new and used motor vehicles prices fell 3.2 percent.

Apparel prices rose 1.1 percent in August, following a 3.4 percent decline in July. Apparel prices typically increase in late summer as fall merchandise is introduced. Over the year, apparel prices were down 4.3 percent.

Food and beverages prices rose 0.4 percent in August. Prices for food at home increased 0.6 percent while prices for food away from home rose 0.2 percent. Alcoholic beverage prices remained unchanged. For the year, prices for food and beverages were up 1.8 percent, with food at home rising 1.9 percent and food away from home rising 1.8 percent. Prices for alcoholic beverages were up 0.9 percent over the year.

Housing costs edged down 0.1 percent in August following an increase of 0.1 percent in July. Shelter costs were unchanged in August. Owners' equivalent rent rose 0.1 percent, while rent of a primary residence increased 0.2 percent.

Prices for lodging away from home declined. Prices for fuels and utilities decreased 0.4 percent as electricity prices edged up 0.1 percent and utility natural gas prices declined 1.7 percent. Prices for household furnishings and operations declined 0.2 percent.

Over the year, housing prices rose 2.2 percent. Shelter costs increased 1.5 percent and fuels and utilities prices were up 11.5 percent.

Utility natural gas prices climbed 32.5 percent over the year, while electricity prices increased 1.8 percent. Prices for household furnishings and operations fell 2.2 percent.

Medical care costs rose 0.2 percent in August. Medical care service prices increased 0.3 percent. Medical care commodities prices remained unchanged. Medical care costs were up 3.9 percent over the year, the largest annual increase of any major expenditure category. Medical care services prices led the increase, rising 4.1 percent over the year.

Recreation prices, which include both recreation equipment and fees for admission to recreation events, remained unchanged in August. Recreation prices decreased 0.5 percent over the year. Education and communication prices rose 0.2 percent in August, the third consecutive month of increasing prices. Over the year, education and communication prices were up 0.4 percent.

Prices for other goods and services edged up 0.2 percent in August, led by an increase in prices for tobacco and smoking products.

Prices for other goods and services declined 0.1 percent over the year.

The Midwest Consumer Price Index for All Urban Consumers stood at 178.8 in August, which means a typical market basket of goods and services that cost $100 in the 1982-84 base period cost $178.80 in August 2003.