Prices in the Midwest Region, as measured by the Consumer Price Index for All Urban Consumers, increased 0.1 percent in October, the U.S. Bureau of Labor Statistics reported this week.

The Midwest region is comprised of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.

The index for all items less food and energy was up 0.3 percent, and the food index rose 0.4 percent over the month. The energy index was down 0.8 percent in October, according to the BLSD. Within the all items less food and energy category, prices for owners’ equivalent rent of residence, recreation, and rent of primary residence contributed the most to the increase. 

Over the last 12 months, the CPI-U increased 7.4 percent. The index for all items less food and energy advanced 5.8 percent over the year. Food prices rose 12.1 percent compared to their October 2021 levels. Energy prices increased 16.2 percent, led by an increase in the price of gasoline.

Food

Food prices advanced 0.4 percent for the month of October, the BLS report noted. Prices for food away from home (restaurant, cafeteria, and vending purchases) rose 0.6 percent over the month. Prices for food at home (grocery store items) increased 0.3 percent over the same period. The increase in the index for food at home was due to increases in the cost for other food at home (+1.3 percent), meats, poultry, fish, and eggs (+0.5 percent), and dairy and related products (+0.8 percent). This increase was partially offset by lower prices for fruits and vegetables (-1.2 percent).

Over the year, food prices rose 12.1 percent. Prices for food at home advanced 13.2 percent since a year ago, with all six major grocery store food group indexes contributing to the rise. The other food at home index (sugar, sweets, fats, and oils, for example) contributed most to the increase at 16.3 percent. Prices for food away from home increased 10.0 percent over the same period.

Energy

The energy index declined 0.8 percent over the month. The decrease was due to lower prices for natural gas service (-7.8 percent), and electricity (-3.9 percent). The decline was moderated by a rise in the prices paid for gasoline (+3.9 percent).

From October 2021 to October 2022, energy prices rose 16.2 percent, mainly due to higher prices for gasoline (+20.1 percent), but all energy categories contributed. Prices paid for natural gas service increased 17.4 percent, and prices for electricity advanced 8.5 percent during the past year.

All items less food and energy

The index for all items less food and energy increased 0.3 percent in October. This rise was driven mainly by higher prices for owners’ equivalent rent of residence (+0.7 percent), recreation (+1.5 percent), and rent of primary residence (+0.8 percent). These increases were partially offset by lower prices for used cars and trucks (-2.3 percent), medical care services (-0.4 percent), and apparel (-1.0 percent).

Over the year, the index for all items less food and energy advanced 5.8 percent. Components contributing most to the increase included owners’ equivalent rent of residence (+5.7 percent), medical care services (+5.3 percent), recreation (+7.4 percent), household furnishings and operations (+8.8 percent), and new vehicles (+9.2 percent).

Background

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 93 percent of the total U.S. population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 29 percent of the total U.S. population. 

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 75 urban areas across the country from about 6,000 housing units and approximately 22,000 retail establishments.