Consumer prices in the Phoenix-Mesa metropolitan area rose 1.6 percent during the first half of 2004 according to the Bureau of Labor Statistics of the U.S. Department of Labor. Regional Commissioner Richard J. Holden said price increases in housing, as well as the gasoline component of transportation were largely responsible for the overall increase in the past six months. Compared to the same period a year ago, the all items index rose 2.0 percent. Food and beverage prices also contributed significantly to the increase over the past year.

During the first six months of 2004, the overall housing index advanced 1.3 percent and has increased 1.9 percent over the past 12 months. The shelter component rose 1.4 percent for the six month period and 2.0 percent over the year. Within shelter, rent of primary residence advanced 0.7 percent while owners' equivalent rent of primary residence increased 0.3 percent in the last six months. From a year ago, these indexes rose 1.0 and 0.9 percent, respectively. The household fuels and utilities category decreased 2.0 percent during the first half of 2004, but was 0.7 percent higher than the same period in 2003. Within household fuels, prices for electricity decreased 8.0 percent during the first half of 2004, but measured 0.9 percent higher than the same period a year ago. The natural gas service index increased 6.7 percent during the last six months, and was 7.0 percent higher than last year's level. The household furnishings and operations category increased 1.7 percent in the past six months and 1.0 percent from a year ago.

The overall transportation index increased 0.5 percent during the first half of 2004, but declined 2.4 percent for the year, making it the only major category with lower prices compared to a year ago. Gasoline prices increased by 14.7 percent during the past six months, following a previous six month decrease of 2.5 percent. The private transportation category increased 1.3 percent during the past six months, but was 1.5 percent lower than last year's level. The transportation index also includes the unpublished category of public transportation.

The food and beverages index moved up 2.4 percent over the past six months, following a previous six month increase of 2.1 percent. During the first half of 2004, grocery prices, as measured by the food at home index, increased 2.9 percent, while the prices for food away from home increased by 1.6 percent. For the same period, prices for alcoholic beverages increased 3.7 percent. Over the past year, grocery prices rose 6.7 percent, while the prices for eating out increased by 2.5 percent. Alcoholic beverage prices increased 3.4 percent over the 12-month period.

Education and communication was the only major category to record a decline during the first half of 2004, as prices fell 0.9 percent in this category. For the year, however, education and communication prices increased 2.9 percent.

During the first half of 2004, the index for medical care rose 3.0 percent. The index is 5.7 percent above last year's level.

The index for recreation advanced 4.6 percent in the first half of 2004. Over the year, prices for recreation increased 5.3 percent.

Prices in the other goods and services index advanced 0.7 percent during the first half of 2004. From the first half of 2003, the index rose 1.8 percent.

During the first six months of 2004, apparel prices increased 9.2 percent. For the year, apparel prices rose by 9.4 percent.

The area's Consumer Price Index for All Urban Consumers advanced to 105.2 (December 2001=100) during the first half of 2004. This means a market basket of goods and services that cost $100.00 in December of 2001 would have cost $105.20 during the first six months of 2004. Local area CPI data are not seasonally adjusted.

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