Consumer Price Index, New York-Northern New Jersey – January 2013

Area prices up 0.5 percent over the month and 2.2 percent over the year

Prices in the New York-Northern New Jersey-Long Island area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), rose 0.5 percent in January, the first increase since September, the U.S. Bureau of Labor Statistics reported today. Chief Regional Economist Martin Kohli attributed the upturn to rising energy and food prices. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect seasonal influences.)

Over the year, the CPI-U advanced 2.2 percent. (See chart 1. and table A. ) The over-the-year increase was primarily due to higher prices for shelter and for energy. The index for all items less food and energy rose 2.0 percent.

Food

The food index increased 0.6 percent, after edging down 0.2 percent in December. A 1.0-percent jump in prices for food at home, the largest rise since December 2011, overshadowed a 0.2-percent increase in prices for food away from home. Contributing to the rise in at-home food prices were many different groceries, including juices; fresh fish and seafood; pork chops; potatoes; other vegetables; tea; cakes, cupcakes, and cookies; and ice cream.

From January 2012 to January 2013, the food index increased 1.8 percent. Prices for food at home rose 2.0 percent, and prices for food away from home, 1.6 percent. (See table 1.)

Energy

The energy index advanced 2.4 percent, after declining in each of the prior three months. The main contributor to the upturn was household energy, which climbed 5.7 percent, largely due to a 10.4-percent jump in electricity charges. Natural gas prices also rose, 0.7 percent, as did prices for fuel oil. Gasoline prices, in contrast, registered a 1.0-percent decline, the fourth consecutive month with a decrease.

Over the year, energy prices rose 4.3 percent. Household energy prices increased 5.5 percent, and gasoline prices rose 3.0 percent.

All items less food and energy

The index for all items less food and energy posted a 0.3-percent increase. Prices for shelter rose 0.2 percent for the fourth consecutive month. Medical care prices advanced 0.6 percent, with increases in prescription drugs and eyeglasses and eye care. Price increases were also reported for new vehicles, motor vehicle repair, and airline fares. Four other categories—apparel, education and communication, household furnishings and operations, and recreation—recorded increases in January after declining in December.

Over the year, the index for all items less food and energy rose 2.0 percent. Shelter prices increased 2.2 percent, and medical care prices rose 2.3 percent.

CPI-W

In January, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was 250.849, up 0.5 percent over the month. The CPI-W increased 2.2 percent over the year.

The February 2013 Consumer Price Index for New York-Northern New Jersey-Long Island is scheduled to be released on Friday, March 15, 2013 at 8:30 a.m. (ET).

Technical note

The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market basket of goods and services. The Bureau of Labor Statistics publishes CPIs for two population groups: (1) a CPI for All Urban Consumers (CPI-U) which covers approximately 88 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers 29 percent of the total population. The CPI-U includes, in addition to wage earners and clerical workers, groups such as professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, and retirees and others not in the labor force.

The CPI is based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors' and dentists' services, drugs, and the other goods and services that people buy for day-to-day living. Each month, prices are collected in 87 urban areas across the country from about 4,000 housing units and approximately 25,000 retail establishments–department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments. All taxes directly associated with the purchase and use of items are included in the index.

The index measures price changes from a designated reference date (1982-84) that equals 100.0. An increase of 16.5 percent, for example, is shown as 116.5. This change can also be expressed in dollars as follows: the price of a base period "market basket" of goods and services in the CPI has risen from $10 in 1982-84 to $11.65. For further details see the CPI home page on the Internet at www.bls.gov/cpi and the BLS Handbook of Methods, Chapter 17, The Consumer Price Index, available on the Internet at www.bls.gov/opub/hom/homch17_a.htm.

In calculating the index, price changes for the various items in each location are averaged together with weights that represent their importance in the spending of the appropriate population group. Local data are then combined to obtain a U.S. city average. Because the sample size of a local area is smaller, the local area index is subject to substantially more sampling and other measurement error than the national index. In addition, local indexes are not adjusted for seasonal influences. As a result, local area indexes show greater volatility than the national index, although their long-term trends are quite similar. NOTE: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period.

The New York-Northern New Jersey-Long Island, N.Y.-N.J.-Conn.-Pa. consolidated area covered in this release is comprised of Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, and Westchester Counties in New York State; Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren Counties in New Jersey; Fairfield County and parts of Litchfield, Middlesex, and New Haven Counties in Connecticut; and Pike County in Pennsylvania.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; Federal Relay Service: 800-877-8339.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods, New York-Northern N.J.-Long Island, NY-NJ-CT-PA (1982-84=100 unless otherwise noted) (not seasonally adjusted)

Item and Group	Indexes			Percent change from-
	Nov. 2012	Dec. 2012	Jan. 2013	Jan. 2012	Nov. 2012	Dec. 2012
Expenditure category
All items	254.285	253.555	254.807	2.2	0.2	0.5
All items (1967=100)	735.102	732.992	736.613
Food and beverages	245.804	245.398	246.755	1.7	0.4	0.6
Food	245.447	245.044	246.545	1.8	0.4	0.6
Food at home	245.918	245.793	248.150	2.0	0.9	1.0
Food away from home	251.385	250.607	251.029	1.6	-0.1	0.2
Alcoholic beverages	247.018	246.561	245.888	0.3	-0.5	-0.3
Housing	266.862	267.015	268.881	2.4	0.8	0.7
Shelter	326.465	327.068	327.598	2.2	0.3	0.2
Rent of primary residence (1)	331.472	332.255	332.991	2.5	0.5	0.2
Owners' equivalent rent of residences (1) (2)	333.537	334.387	334.950	2.1	0.4	0.2
Owners' equivalent rent of primary residence (1) (2)	333.356	334.204	334.770	2.1	0.4	0.2
Fuels and utilities	199.513	197.871	207.645	5.3	4.1	4.9
Household energy	195.671	193.851	204.860	5.5	4.7	5.7
Energy services (1)	178.249	176.034	188.553	6.3	5.8	7.1
Electricity (1)	178.702	173.424	191.444	7.1	7.1	10.4
Utility (piped) gas service (1)	171.892	175.836	177.034	4.4	3.0	0.7
Household furnishings and operations	121.313	121.245	121.813	-0.4	0.4	0.5
Apparel	124.685	122.501	123.400	3.4	-1.0	0.7
Transportation	230.283	227.652	227.739	2.3	-1.1	0.0
Private transportation	218.921	216.153	216.131	1.7	-1.3	0.0
Motor fuel	299.131	284.817	281.900	3.0	-5.8	-1.0
Gasoline (all types)	298.036	283.474	280.510	3.0	-5.9	-1.0
Gasoline, unleaded regular (3)	300.564	285.379	282.095	2.4	-6.1	-1.2
Gasoline, unleaded midgrade (3) (4)	301.433	288.152	285.471	4.6	-5.3	-0.9
Gasoline, unleaded premium (3)	294.184	281.033	279.556	4.9	-5.0	-0.5
Medical care	415.741	414.838	417.173	2.3	0.3	0.6
Recreation (5)	118.728	118.217	118.485	1.2	-0.2	0.2
Education and communication (5)	139.747	139.440	139.909	1.1	0.1	0.3
Other goods and services	392.824	393.652	393.129	1.5	0.1	-0.1
Commodity and service group
All items	254.285	253.555	254.807	2.2	0.2	0.5
Commodities	194.840	192.935	193.934	1.5	-0.5	0.5
Commodities less food and beverages	160.594	158.053	158.829	1.3	-1.1	0.5
Nondurables less food and beverages	205.872	201.169	201.746	2.2	-2.0	0.3
Durables	103.228	103.201	104.166	-0.5	0.9	0.9
Services	305.271	305.543	307.013	2.5	0.6	0.5
Special aggregate indexes
All items less medical care	247.119	246.399	247.606	2.2	0.2	0.5
All items less shelter	226.118	224.862	226.400	2.2	0.1	0.7
Commodities less food	164.197	161.708	162.443	1.3	-1.1	0.5
Nondurables	228.348	225.643	226.605	1.9	-0.8	0.4
Nondurables less food	208.720	204.248	204.754	2.0	-1.9	0.2
Services less rent of shelter (2)	292.626	292.718	295.292	2.9	0.9	0.9
Services less medical care services	296.312	296.580	298.017	2.5	0.6	0.5
Energy	238.219	231.426	236.993	4.3	-0.5	2.4
All items less energy	257.644	257.508	258.343	2.0	0.3	0.3
All items less food and energy	261.476	261.391	262.102	2.0	0.2	0.3
Footnotes (1) This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator. (2) Index is on a December 1982=100 base. (3) Special index based on a substantially smaller sample. (4) Indexes on a December 1993=100 base. (5) Indexes on a December 1997=100 base.
NOTE: Index applies to a month as a whole, not to any specific date. The New York-Northern New Jersey-Long Island, NY-NJ-CT-PA consolidated area comprises the five boroughs of New York City, Nassau, Suffolk, Westchester, Rockland, Putnam, Dutchess, and Orange Counties in New York State; Bergen, Essex, Hudson, Hunterdon, Mercer, Monmouth, Middlesex, Morris, Ocean, Passaic, Somerset, Sussex, Union, and Warren Counties in New Jersey; Fairfield County and parts of Litchfield, New Haven, and Middlesex Counties in Connecticut; and Pike County in Pennsylvania.