Rising transportation costs push up Midwest price index

Consumer prices in the Midwest rose 0.4 percent in May, most noticeably in transportation costs, according to the latest Consumer Price Index by the U.S. Bureau of Labor Statistics.

Climbing transportation costs, led by a 12.7 percent spike in motor fuel prices, accounted for about three-fourths of the index's increase. Costs for medical care also had an effect on the index with 0.8 percent growth in May.

Housing costs were down a slight 0.1 percent, largely due to a 0.8 percent drop in fuels and utilities prices. Electricity prices were up 0.7 percent, but utility gas service costs fell for the 10th consecutive month by 4.1 percent.

Despite the May increase, the index last month was 1.9 percent lower than a year ago, the largest year-over-year decline since the index was first published in 1966. The drastic change is mostly attributed to a 39.5 percent drop in motor fuel costs from a year ago and a 38 percent drop in utility gas service costs from a year ago.

The Midwest recorded the largest increase in prices among U.S. regions in May, but had the largest decrease from May 2008. Prices rose 0.3 percent in both the South and the West and 0.1 percent in the Northeast last month, compared to April.