Motor fuel price drop impacts Midwest CPI

An 8.1 percent decrease in motor fuel prices was the largest trigger in a month-to-month decline in the Midwest Consumer Price Index.

The regional CPI was down 0.6 percent in November following a 0.5 percent drop in October, according to a U.S. Bureau of Labor Statistics news release.

The November rate dropped to 224.4 last month, compared to 225.79 in October.

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 $224.40 last month. The index is not seasonally adjusted, and items are weighted based on their spending significance in certain areas, according to the BLS.

Compared to November 2013, last month’s Midwest CPI was up 1.2 percent, led by a 3.2 percent increase in food prices, according to the BLS.

The energy index last month fell 4.9 percent, registering its fifth consecutive monthly decline. Beyond the 8.1 percent drop in motor fuel prices - the largest one month decrease since December 2008 - electricity prices were 2.3 percent lower. Piped utility gas service increased 0.7 percent.

The food index for the Midwest ticked down 0.2 percent in November. Costs for food at home declined 0.7 percent - the largest monthly decrease since March 2009 - and costs for food away from home rose 0.5 percent, according to the release.

The index for all other items also decreased 0.2 percent. Lower prices were recorded in apparel, at 2.5 percent, and used cars and trucks, down 2.6 percent. Among offsetting categories were a 0.2 percent increase in rent and 0.2 percent bump in medical care.[[In-content Ad]]