4.1. ERMUSR 12-13-2016 - Laserfiche WebLink

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Energy The energy index decreased 8.5 percent from the first half of 2015 to the first half of 2016. Within the energy category, the indexes for gasoline and utility (piped) gas service declined 15.1 percent and 12.7 percent, respectively, over the year. The index for electricity rose 5.9 percent compared to its first half 2015 level. All items less food and energy The all items less food and energy index increased 2.5 percent over the year.Among the index's components, higher costs were recorded for shelter(4.0 percent), medical care (3.7 percent), and recreation(2.9 percent). The second half 2016 Consumer Price Index for Minneapolis-St. Paul is scheduled to be released in January 2017. 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 89 percent of the total population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W)which covers 28 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 6,000 housing units and approximately 24,000 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/pdf/homch17.pdf. 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 - 2 - 64