Consumer Price Index, West Region — August 2022. Click to enlarge. Graphic courtesy of the U.S. Bureau of Labor Statistics.

The news on Sept. 13 that inflation was worse than Wall Street anticipated sent the S&P index tumbling a record 4%, a drop not seen since the worst of the pandemic downturn in June 2020.

The good news is that price barely budged in the western states between July and August. The bad news is that they still are painfully high compared to this time last year.

According to a U.S. Bureau of Labor Statistics (BLS) report issued on Sept. 13, prices in the West region, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), were unchanged in August. A decrease in gasoline prices helped offset higher prices for shelter. The data reported are not seasonally adjusted, meaning that cyclical seasonal treads have not been corrected.

Over the last 12 months, the CPI-U increased 8.1%. Food prices advanced 10.8%. Energy prices rose 20%, largely the result of an increase in the price of gasoline. The index for all items less food and energy rose 6.7% over the year.

Food

Food prices increased 0.7% for the month of August. Prices for food at home increased 0.7%, with increases in five of the six subcategories. Prices for food away from home advanced 0.6% for the same period.

Over the year, food prices advanced 10.8%. Prices for food at home rose 13.4% since a year ago, with price increases above 10% in all six subcategories. Prices for food away from home advanced 7.3%.

Energy

The energy index declined 5.4% over the month. The decrease was mainly due to lower prices for gasoline (-9%). Prices for natural gas service advanced 3%, and prices for electricity rose 0.1% for the same period.

Energy prices rose 20% over the year, largely due to higher prices for gasoline (24.3%). Prices paid for natural gas service increased 22%, and prices for electricity increased 10.2% during the past year.

All items minus food and energy

The index for all items less food and energy increased 0.4% in August. Higher prices for medical care (1.2%) and shelter (0.7%) were partially offset by lower prices for used cars and trucks (-0.4%).

Over the year, the index for all items minus food and energy rose 6.7%. Components contributing to the increase included household furnishings and operations (11%), new and used motor vehicles (9.3%) and shelter (6.7%).

The CPI

The West region for the BLS includes Alaska, Arizona, California, Colorado, Guam, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming. The CPI is based on prices of food, clothing, shelter, fuels, transportation fares, charges for doctors’ and dentists’ services, drugs and other goods and services that people buy for day-to-day living. All taxes directly associated with the purchase and use of items are included in the index.