Transcript
Understanding the Consumer
Price Index
CPI- Consumer Price Index
Cost of Living relative to a base period
CPI is 100 in base period 1982-84
Cost of market basket of goods
Urban households, other demographic
regions
Collected Monthly
Housing 41.4%
Transportation 17.4%
Food 16.2%
Energy 8.2%
Medical Care 6.4%
Apparel and Upkeep 6.1%
Other 3.9%
Assumes market basket fixed
Slow to recognize new products
Hard to measure quality improvements
Purchasing power of your income
How many market baskets can it buy?
Nominal income better predictor
.05 Hershey bar
.05 New York Times
.04 First class postage stamp
.31 Gallon of regular gas
.28 McDonald’s double hamburger
$2,529 Full size Chevrolet
$30 in 1961
$100 in 1983
$212 in 2008
Babe Ruth (1931) $80,000
A Rod (2010) $33 million
Nominal wage was $1.65 hour 1952
Rose to $17 in 2007; 10x increase
Real wages peaked in mid-1970’s!
Situation - Consumers across
North Dakota are being impacted
by the rising price of food, gas
and housing. Is oil activity
impacting prices? Will the
drought impact prices?
Extension Response –
ND Consumer Price Survey
Family Economic Program Team
Compare:
• oil impacted vs. non-oil impacted
• size of community
• type of business.
Small basket of food items that can
easily be found in most stores
County Extension staff and Volunteers
Gather prices at their local groceries
and supermarkets
Continue through 2013
County Extension staff record prices
in the online survey
Data and talking points provided to
County offices each month.
News releases provided
????
37 Counties Gathering Prices
September 2012
Grand Forks
Cass
Richland
SargentDickey
Ransom
McIntosh
Logan
StutsmanBarnes
Foster
Benson
Ramsey
Tow
ner CavalierBottineau
McHenry
WardMountrail
McLean
Williams
McKenzie
Golden Valley Stark
Dunn
MortonBurleigh
Grant
Mercer
Adams
Hettinger
Bowman
Slope
Billings
Divide Burke
Ren
ville Rolette Pembina
Walsh
Pie
rce
Oliver
Eddie
Sioux
Wells
Lamoure
Kidder
Nelson
Griggs Steele Traill
ND CountiesImpacted Oil Counties
High Impacted Oil Counties
Grand Forks
Cass
Richland
SargentDickey
Ransom
McIntosh
Logan
StutsmanBarnes
Foster
Benson
Ramsey
Tow
ne
r CavalierBottineau
McHenry
WardMountrail
McLean
Williams
McKenzie
Golden Valley Stark
Dunn
MortonBurleigh
Grant
Mercer
Adams
HettingerSlope
Billings
Divide Burke
Ren
ville Rolette Pembina
Walsh
Pie
rce
Oliver
Eddie
Sioux
Wells
Lamoure
Kidder
Nelson
Griggs Steele Traill
In Sept. the high price of food package
was $50.36 which is 52% higher than
the lowest price of $33.09.
In Oct $51.56 – 66% - $31.07
The average cost of our package was
$41.37 in September. $40.65 in Oct.
In Sept. the average price of package in
Oil Impacted Counties was $42.24
compared to the rest of the state at
$40.69.
Oct. - $40.90 - $40.48
In Sept. our smaller local grocers had
an average food package of $43.67
which is just 11% higher than the
average price of the package at a large
supermarket at $39.28.
Oct. - $44.00 - 16% - $37.95
In Sept. 14 oz box of Cheerios sold at a
high price of $6.99 and a low price of
$2.69.
The high price found at a local grocery
store and the low price at a national
chain store.
Oct. - $6.99 - $2.50
A gal of 2% milk in North Dakota
Our highest milk price was $6.67 - $6.67
Lowest Price was $2.79 - $2.89
Average Price was $4.65 - $4.67
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