Prices in the Northeast Region, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), decreased by 0.1 percent in December, the U.S. Bureau of Labor Statistics reported today. (See table A.) Regional Commissioner Alexandra Hall Bovee noted that the December decrease was due predominately to lower prices for gasoline, which declined 8.5 percent over the month. As a result, the energy index was down 4.0 percent. The all items less food and energy index was up 0.3 percent while the food index rose 0.2 percent, representing a mix of increases and decreases within their categories. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect the impact of seasonal influences.)

Over the last 12 months, the Northeast all items CPI-U index rose 6.1 percent, the smallest increase since December 2021. (See chart 1 and table A.) The all items less food and energy index, up 4.8 percent, was predominantly responsible for the over-the-year increase in December. The food index increased 9.5 percent while the energy index advanced 14.6 percent, both moderating from recent peaks earlier in the year. (See table 1.)

Food

In December, food prices rose 0.2 percent for the second month in a row, well below the recent peak of 1.3 percent in July. (See table 1.) Of the two major components within the food index, prices for food away from home increased 0.4 percent and were responsible for much of the rise in food prices. Food at home prices advanced 0.2 percent. Prices for fruits and vegetables noticeably rose 1.6 percent over the month after 2 months of declines in the index, contributing the most to the food index increase. Within the fruits and vegetables index, prices for tomatoes were up while citrus fruits were down over the month. The other food at home index was up 0.6 percent; but decreases in other grocery categories moderated the overall rise, including meats, poultry, fish, and eggs—down 0.4 percent, resulting from diverging price changes between fresh fish and seafood (down), chicken (down), and eggs (up). Other indexes tempering the increase were cereals and bakery products (down 0.6 percent and the first decline in the index since January 2021), dairy and related products (down 0.5 percent and the first decrease in the index since August 2021), and nonalcoholic beverages and beverage materials (down 0.2 percent).

From December 2021 to December 2022, the food index increased 9.5 percent, moderating from the recent 10.3-percent peak in October. The food at home index advanced 10.8 percent since a year ago—continuing a trend of double-digit increases since May 2022—as prices in all grocery categories rose over the year. This was led by a 12.4-percent increase in the other food at home index and a 16.2-percent rise in the cereals and bakery products index; both indexes declined from their recent peaks earlier in the year but continued to report double-digit rises. The food away from home index increased 7.3 percent.

Energy

The energy index decreased 4.0 percent over the month, on par with decreases seen in July, August, and September. The December decline was primarily due to lower prices for gasoline, which dropped 8.5 percent following a 4.8 percent rise in November. Throughout 2022, changes in the gasoline index ranged from -11.0 percent (September) to 18.0 percent (March). Fuel oil prices were also down. Increases in the indexes for electricity (up 2.6 percent) and utility (piped) gas service (up 2.7 percent) tempered the decrease in the overall index.

Energy prices increased over the year, up 14.6 percent, the lowest rise since March 2021 and well below the peak of 44.2 percent in June. Over the year, prices for electricity were up 21.9 percent, the highest they have risen since the series began in 1978. The utility (piped) gas service index was up 23.6 percent, and the fuel oil index also rose. Gasoline prices advanced 1.6 percent, notably below the peak in June of 60.0 percent and the smallest over-the-year increase in nearly 2 years.

All items less food and energy

The index for all items less food and energy increased 0.3 percent in December, led by the shelter index rise of 0.6 percent over the month. Within shelter, the owners’ equivalent rent of residences index also increased 0.6 percent while rent of primary residence rose 0.8 percent (the highest since November 1999). The household furnishing and operations index advanced 1.4 percent. Prices for new and used motor vehicles were up 0.6 percent. Other component indexes moderated the overall increase, including used cars and trucks—down 2.5 percent, marking the 4^th consecutive month of decline. Other indexes with lower prices were apparel (down 1.4 percent), education and communication (down 0.3 percent), other goods and services (down 0.5 percent), recreation (down 0.3 percent), and medical care (down 0.2 percent).

Over the year, the index for all items less food and energy was up 4.8 percent; in 2022, increases in the index ranged from 4.3 to 5.4 percent. Increases in the shelter index were driven by the owners’ equivalent rent of residences index, up 5.1 and 5.0 percent respectively; both were the highest 12-month change since January 2007. The 5.8-percent rise in rent of primary residence was the largest since November 1989. Increases in prices for household furnishings and operations (up 7.3 percent), new and used motor vehicles (up 4.0 percent, well below the high of 23.2 percent in February), and medical care (up 4.2 percent) also contributed to the all items less food and energy increase. The only major category to decline over the year was the index for used cars and trucks, down 8.7 percent, the lowest since May 2009 and well below the 42.5 percent increase posted in February 2022.

Geographic divisions

Additional price indexes are now available for the two divisions of the Northeast. Over the month, the all items CPI-U index for the New England division decreased by 0.5 percent. For the Middle Atlantic division, the all items CPI-U index increased by 0.1 percent over the month.

Over the year, the all items index advanced 6.3 percent in the Middle Atlantic division and 5.5 percent in the New England division. (See table B.)

Table A. Northeast region CPI-U 1-month and 12-month percent changes, all items index, not seasonally adjusted

Month	2018		2019		2020		2021		2022
	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month	1-month	12-month
January	0.5	1.6	0.3	1.5	0.7	2.3	0.4	1.1	0.8	6.3
February	0.4	1.7	0.2	1.3	0.3	2.4	0.4	1.2	0.7	6.6
March	0.1	2.0	0.5	1.7	-0.2	1.7	0.6	2.1	1.3	7.3
April	0.4	2.1	0.4	1.7	-0.4	0.8	0.7	3.3	0.6	7.2
May	0.4	2.5	0.3	1.5	0.0	0.6	0.6	3.9	0.9	7.5
June	0.0	2.6	0.1	1.6	0.3	0.8	1.0	4.6	1.2	7.6
July	0.0	2.7	0.1	1.7	0.4	1.1	0.2	4.3	-0.2	7.3
August	0.2	2.7	0.1	1.5	0.1	1.1	0.1	4.4	0.3	7.4
September	0.1	2.2	0.0	1.4	0.1	1.2	0.3	4.6	0.1	7.2
October	-0.1	2.3	-0.1	1.5	-0.2	1.1	0.6	5.4	0.3	6.9
November	-0.4	1.9	0.1	1.9	0.1	1.1	0.6	6.0	0.1	6.4
December	-0.1	1.7	-0.1	1.9	0.2	1.4	0.2	5.9	-0.1	6.1

Table B. CPI-U 1-month and 12-month percent changes, all items index, Northeast region and divisions, not seasonally adjusted

Area	1-month change	12-month change
Northeast	-0.1	6.1
New England Division	-0.5	5.5
Middle Atlantic Division	0.1	6.3

The January 2022 Consumer Price Index for the Northeast Region is scheduled to be released on February 14, 2023.

Technical Note

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-U includes, in addition to wage earners and clerical workers, groups such as professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, and retirees and others not in the labor force.

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—department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments. All taxes directly associated with the purchase and use of items are included in the index.

The index measures price changes from a designated reference date; for most of the CPI-U the reference base is 1982-84 equals 100. An increase of 7 percent from the reference base, for example, is shown as 107.000.  Alternatively, that relationship can also be expressed as the price of a base period market basket of goods and services rising from $100 to $107. For further details see the CPI home page on the Internet at www.bls.gov/cpi and the CPI section of the BLS Handbook of Methods available on the internet at www.bls.gov/opub/hom/cpi/.

In calculating the index, price changes for the various items in each location are averaged together with weights that represent their importance in the spending of the appropriate population group. Local data are then combined to obtain a U.S. city average. Because the sample size of a local area is smaller, the local area index is subject to substantially more sampling and other measurement error than the national index. In addition, local indexes are not adjusted for seasonal influences. As a result, local area indexes show greater volatility than the national index, although their long-term trends are quite similar. NOTE: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period.

The Northeast region is comprised of Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

The New England division is comprised of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.

The Middle Atlantic division is comprised of New Jersey, New York, and Pennsylvania.

Information in this release will be made available to individuals with sensory impairments upon request. Voice phone: (202) 691-5200; Telecommunications Relay Service: 7-1-1.

Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods, Northeast Region, (1982-84=100 unless otherwise noted) (not seasonally adjusted)

Expenditure category	Indexes				Percent change from
	Historical data	Oct. 2022	Nov. 2022	Dec. 2022	Dec. 2021	Oct. 2022	Nov. 2022
All items		308.001	308.394	308.150	6.1	0.0	-0.1
All items (December 1977 = 100)		485.007	485.626	485.242
Food and beverages		316.024	316.523	317.382	9.3	0.4	0.3
Food		318.362	318.887	319.678	9.5	0.4	0.2
Food at home		302.019	302.349	302.872	10.8	0.3	0.2
Cereals and bakery products		373.078	375.754	373.637	16.2	0.1	-0.6
Meats, poultry, fish, and eggs		311.783	312.165	310.878	6.8	-0.3	-0.4
Dairy and related products		278.263	280.700	279.412	14.1	0.4	-0.5
Fruits and vegetables		355.404	354.639	360.229	8.6	1.4	1.6
Nonalcoholic beverages and beverage materials		207.291	207.156	206.688	9.8	-0.3	-0.2
Other food at home		271.297	270.593	272.247	12.4	0.4	0.6
Food away from home		345.023	345.927	347.234	7.3	0.6	0.4
Alcoholic beverages		283.842	283.983	285.726	6.9	0.7	0.6
Housing		326.092	327.183	328.787	7.2	0.8	0.5
Shelter		392.926	394.293	396.479	5.1	0.9	0.6
Rent of primary residence		394.859	397.558	400.696	5.8	1.5	0.8
Owners' equivalent rent of residences(1)		406.433	408.421	410.917	5.0	1.1	0.6
Owners' equivalent rent of primary residence(1)		406.081	408.076	410.569	5.0	1.1	0.6
Fuels and utilities		312.110	313.359	311.112	21.8	-0.3	-0.7
Household energy		283.553	284.900	282.523	24.7	-0.4	-0.8
Energy services		264.661	265.897	272.890	22.5	3.1	2.6
Electricity		258.006	258.147	264.855	21.9	2.7	2.6
Utility (piped) gas service		257.518	260.721	267.730	23.6	4.0	2.7
Household furnishings and operations		141.125	141.357	143.378	7.3	1.6	1.4
Apparel		131.933	128.061	126.325	2.6	-4.3	-1.4
Transportation		254.525	254.786	251.234	5.3	-1.3	-1.4
Private transportation		252.491	252.467	249.600	4.9	-1.1	-1.1
New and used motor vehicles(2)		126.999	124.517	125.228	4.0	-1.4	0.6
New vehicles		171.359	171.645	171.762	5.3	0.2	0.1
New cars(3)		162.928	162.974	163.378	6.2	0.3	0.2
Used cars and trucks		210.817	204.870	199.703	-8.7	-5.3	-2.5
Motor fuel		310.168	325.173	297.637	1.9	-4.0	-8.5
Gasoline (all types)		308.192	322.845	295.478	1.6	-4.1	-8.5
Gasoline, unleaded regular(3)		303.711	318.386	290.229	0.6	-4.4	-8.8
Gasoline, unleaded midgrade(3)(4)		333.902	348.141	325.398	5.9	-2.5	-6.5
Gasoline, unleaded premium(3)		326.586	340.474	320.008	8.2	-2.0	-6.0
Medical care		579.822	577.943	576.835	4.2	-0.5	-0.2
Medical care commodities		387.913	390.358	393.020	3.3	1.3	0.7
Medical care services		636.577	633.285	630.938	4.4	-0.9	-0.4
Professional services		431.627	430.991	431.227	1.7	-0.1	0.1
Recreation(2)		137.813	137.815	137.393	3.4	-0.3	-0.3
Education and communication(2)		153.585	154.693	154.234	1.1	0.4	-0.3
Tuition, other school fees, and child care(5)		1,374.311	1,374.335	1,375.919	2.5	0.1	0.1
Other goods and services		569.966	568.889	565.841	5.4	-0.7	-0.5
Commodity and service group
Commodities		227.437	227.522	224.898	5.5	-1.1	-1.2
Commodities less food and beverages		180.359	180.282	176.488	3.0	-2.1	-2.1
Nondurables less food and beverages		231.542	232.770	224.480	5.6	-3.0	-3.6
Durables		123.827	123.010	122.375	0.4	-1.2	-0.5
Services		385.271	385.971	388.149	6.5	0.7	0.6
Special aggregate indexes
All items less shelter		278.836	278.888	277.789	6.6	-0.4	-0.4
All items less medical care		296.023	296.511	296.304	6.3	0.1	-0.1
Commodities less food		184.289	184.218	180.546	3.2	-2.0	-2.0
Nondurables		273.362	274.240	270.372	7.7	-1.1	-1.4
Nondurables less food		234.547	235.706	228.054	5.7	-2.8	-3.2
Services less rent of shelter(1)		390.075	390.053	392.279	8.0	0.6	0.6
Services less medical care services		367.948	368.905	371.370	6.7	0.9	0.7
Energy		295.557	302.168	290.095	14.6	-1.8	-4.0
All items less energy		313.113	312.958	313.764	5.5	0.2	0.3
All items less food and energy		314.180	313.904	314.717	4.8	0.2	0.3
Footnotes (1) Indexes on a December 1982=100 base. (2) Indexes on a December 1997=100 base. (3) Special index based on a substantially smaller sample. (4) Indexes on a December 1993=100 base. (5) Indexes on a December 1977=100 base.