Showing posts with label atlanta cpi. Show all posts
Showing posts with label atlanta cpi. Show all posts

Tuesday, July 13, 2021

Inflation in Atlanta advances: Consumer prices rise 1.8 percent over 2 months, 6.7 percent over the year

 

Consumer prices in the Atlanta metro area advanced 1.8 percent in the two months ending in June 2021, according to new information released by the U.S. Bureau of Labor Statistics. The change was the largest two-month increase in the Consumer Price Index for All Urban Consumers for Atlanta-Sandy Springs-Roswell since June 2015. 

Food prices in the Atlanta area rose 1.4 percent, and energy prices increased 4.2 percent between April and June. The index for all items less food and energy increased 1.6 percent over the two-month period. 

Over the past 12 months, the rate of inflation in the Atlanta area was 6.7 percent, the largest 12-month increase since BLS began reporting bi-monthly data for the Atlanta CPI-U in 1999. Food prices rose 1.4 percent over the year, while energy prices increased 27.5 percent. The index for all items less food and energy advanced 5.8 percent. 

12-month inflation rates for selected major indexes 

Costs for food and beverages increased 1.7 percent, as prices for food at home rose 0.1 percent over the 12 months, while costs for food away from home increased 2.8 percent. 

Housing costs rose 4.1 percent with residential rents rising by 4.4 percent, and owners’ equivalent of rent costs increasing 3.9 percent. Costs for fuels and utilities were up 3.2 percent over the year, although electricity costs rose at a slower rate of 1.8 percent. 

Transportation costs increased 23.9 percent, as gasoline costs rose 59.3 percent over the year. Costs for new and used motor vehicles increased 23 percent. Excluding new vehicles, the cost for used cars and trucks was up 44.1 percent. 

Prices for medical care rose 0.3 percent for the 12 months ending in June, the lowest percentage increase of any of the major indexes. 

Looking at inflation over 24 months 

Disruption to consumers and businesses due to Covid-19 restrictions and shutdowns in 2020 appeared to have resulted in a significant decline in inflation rates as consumers cut back on their purchases. For example, the rate of inflation for the 12 months ending in June 2020 was 0.9 percent, a drop from the 1.1 percent increase recorded for the 12 months ending in June 2019. As a result, some of the inflation appearing currently is a catch-up of prices as business activity increases in 2021. 

One way of approaching this decline and then advance of prices is to take the measurement over two years, rather than a single year. For the two years ending in June 2021, the CPI-U for all items advanced 7.6 percent, or 3.8 percent each year over the past two years, a rate which is higher but still closer to the 12-month inflation rates appearing in 2017 for the Atlanta area. 

Using the same formula, the increase in inflation for all items less food and energy rose 8 percent over the past 24 months, or 4 percent each year. 

With the largest slowdowns of inflation occurring in the first half of 2020, the test of whether higher inflation rates are becoming embedded in the economy will come in future months as consumer prices reflect the gradual reopening of the economy that began in the fall of 2020. 

If the two-month increases remain at or above the 1.6 percent rates recorded for the Atlanta area in February and April 2021, then there will be more justification to be concerned over lingering inflation and its related problems. 

About the CPI for Atlanta 

The Consumer Price Index for All Urban Consumers (CPI-U) for Atlanta-Sandy Springs-Roswell measures a fixed market basket of goods and services for all urban consumers in the Atlanta statistical area. 

The Atlanta-Sandy Springs-Roswell, GA, Core Based Statistical Area is comprised of Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Cobb, Coweta, Dawson, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Haralson, Heard, Henry, Jasper, Lamar, Meriwether, Morgan, Newton, Paulding, Pickens, Pike, Rockdale, Spalding, and Walton counties in Georgia.

For additional information, contact the U.S. Bureau of Labor Statistics Southeast Information Office.


Wednesday, May 12, 2021

Atlanta inflation rate increases but not yet above trendline

The Consumer Price Index for All Urban Consumers in Atlanta-Sandy Springs-Roswell, Ga., increased 1.6 percent from February to April, the U.S. Bureau of Labor Statistics reported today. The index for food declined 0.2 percent, while the energy index increased 6.6 percent. The index for all items less food and energy rose 1.6 percent from February to April.

For the 12 months ending in April, the CPI-U for All Items increased 6.0 percent. The index for food declined 0.2 percent over the past 12 months, while the energy index rose 30.0 percent. The index for all items less food and energy increased 5.0 percent.

Considering inflation rates over a 24-month period

While the most recent 12-month increases appear to be large, they come a year after the economy suffered a sharp setback as consumers changed their buying habits and companies saw drop-offs in their business. These resulted in some significant slowdowns in the rate of increase for some inflation measures, while other indexes actually declined over the year. For example, the CPI-U for All Urban Consumers in Atlanta-Sandy Springs-Roswell, Ga., declined 0.3 percent from April 2019 to April 2020.

Because of the sharp slowdown in the economy in 2020, there is good reason to consider inflation not over the past 12 months, but over the past 24 months. In that context, the current inflation rate is in line with inflation in some prior years.

From April 2019 to April 2021, the Consumer Price Index for All Urban Consumers in Atlanta-Sandy Springs-Roswell, Ga., increased 5.6 percent compared to inflation rates of 5.4 percent from 2017 to 2019 and 5.2 percent from 2015 to 2017.

The index for all items less food and energy increased 6.2 percent from 2019 to 2021 compared to inflation rates of 5.1 percent from 2017 to 2019 and 6.9 percent from 2015 to 2017.

Conclusion

While the percentage change over the most recent 12 months may seem to imply higher rates of inflation in the future, once the impact of lower price inflation in 2020 is taken into account, the inflation rates over the most recent 24 months seem in line with past experiences as the economy recovered from the 2007-2009 recession.

Economists will have to wait until later in 2020 to see if retail prices continue to increase at the current rate, accelerate, or actually moderate as the economy recovers from the 2020 downturn.

Thursday, January 14, 2021

Consumer Price Index for Atlanta – December 2020

 


The Consumer Price Index for All Urban Consumers (CPI-U) for the Atlanta metropolitan statistical area rose 1.6 percent for the 12 months ending in December, according to information provided by the U.S. Bureau of Labor Statistics. This compares to a 1.4 percent increase in consumer prices nationwide.

The 12-month increase of consumer prices in the Atlanta area in 2020 was less than half of the 3.3 percent rise recorded for the area in 2019.

Food costs in the Atlanta area rose 3.7 percent over the year, while costs for energy declined 5.9 percent. The index for all items less food and energy increased 2.0 percent in 2020 compared to a 2.8 percent increase recorded in 2019.

Atlanta area price indexes

Costs for food and beverages increased 3.0 percent over the 12 months ending in December 2020. Costs for food at home increased 4.6 percent, while costs for food away from home rose 2.8 percent. This was a reversal from the changes recorded in 2019 when food at home costs rose 3.1 percent, while food away from home increased 4.0 percent.

Housing costs rose 2.6 percent as costs for shelter increased 2.2 percent, while costs for fuels and utilities rose 3.7 percent. Within the fuels and utilities category, electricity costs increased 4.0 percent, less than half of the 10.8 percent increase recorded for 2019. Costs for household furnishings and operations increased 4.7 percent in 2020.

Transportation costs declined 1.6 percent over the year, primarily due to a 16.2 percent drop in the cost of gasoline. Prices for new vehicles rose 7.9 percent, while prices for used cars and trucks increased 9.2 percent.

Medical care costs dropped 1.0 percent in 2020, a sharp reversal from the 11.6 percent increase recorded in 2019. The index for all items less medical care rose by 1.9 percent over the year.

Costs for apparel rose by 3.0 percent, recreation costs increased 2.7 percent, and costs for education and communication increased 2.1 percent in 2020.


The Consumer Price Index (CPI) measures the change in prices paid for consumers of goods and services. The Consumer Price Index for All Urban Consumers (CPI-U) for Atlanta-Sandy Springs-Roswell, Ga., is based on the expenditures of residents of the Atlanta metropolitan statistical area and includes professionals, the self-employed, the poor, the unemployed, and retired people, as well as urban wage earners and clerical workers.

The CPI is a statistical estimate that is subject to sampling error because it is based upon a sample of retail prices and not a complete universe of all prices. BLS calculates and publishes estimates for the CPI-U-Atlanta-Sandy Springs-Roswell, Ga., as a 2-month, 6-month, and 12-month percent change. CPI indexes for the Atlanta area are not seasonally adjusted.

Information on how the coronavirus (COVID-19) has impacted collection of the CPI is available at Effects of COVID-19 Pandemic and Response on the Consumer Price Index : U.S. Bureau of Labor Statistics (bls.gov).  Additional information on the Consumer Price Index program is available at CPI Home : U.S. Bureau of Labor Statistics (bls.gov).


Sunday, January 19, 2020

Atlanta area prices rise 3.3% and continue to grow faster than the United States


Atlanta’s employment is rising faster than for the nation, but the metro area’s cost of living is also increasing faster than for the United States.

Consumer prices in the Atlanta metropolitan area rose by 3.3% in 2019 compared to the nation’s inflation rate of 2.3%, according to information provided by the U.S. Bureau of Labor Statistics.

Source: U.S. Bureau of Labor Statistics

Over the past 5 years, prices in Atlanta have increased by 12.4% compared to a 9.4% increase nationally.

Excluding food and energy costs, the area’s core inflation rate grew by 2.8% as compared to the nation’s 2.3% consistent with the area’s more rapid increase in the cost of living as compared to the nation.

Since 2014, prices in the Atlanta area, excluding food and energy, have risen by 14.9%, while core inflation at the national level has increased nearly 11%.

Medical costs in the Atlanta area rose 11.6% in the past year, the highest calendar year rate of increase since 2002. Over the past 5 years, medical costs in Atlanta have increased 21.6%.

Source: U.S. Bureau of Labor Statistics


In comparison, medical care costs for the nation rose 4.6% in 2019 and have risen 15.9% since 2014.


While housing costs are traditionally seen as lower in the Atlanta area than the nation, the difference between housing costs in Atlanta are growing closer to the national average.

In 2019, housing costs rose 4.3% in Atlanta as compared to 2.6% for the U.S. Over the past 5 years, housing costs for Atlanta have increased 20.9%, while housing costs nationwide rose 14.3%.

Source: U.S. Bureau of Labor Statistics

Costs for shelter (rent and home ownership costs) rose 4.7% over the year in the Atlanta area, while costs for household fuels and utilities increased 4.3%.

After declining over the previous four years, the cost for electricity in the Atlanta metro area rose 10.8% in 2019.
Source: U.S. Bureau of Labor Statistics

Costs for transportation grew slower in the Atlanta metro area than the nation, rising 0.6% last year as opposed to a 1.9% rise nationally.

Over the past 5 years, transportation costs have risen 5.4% in Atlanta and have risen 4.4% nationally.

In contrast, costs for recreation fell in the Atlanta area even as rising nationwide. Recreation costs in the metro area dropped 2.7% last year while rising 1.5% nationwide.

Over the past 5 years, recreation costs in Atlanta have declined 3.9% while rising 5.8% nationally.