THe"Cost" of Living in North Dakota

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

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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