The Bureau of Labor Statistics of the U.S. Department of Labor reported consumer prices in the Seattle-Tacoma-Bremerton area decreased 0.4 percent for the two months ending August 2004. According to the Bureau's Regional Commissioner, Richard J. Holden, lower transportation prices dominated the all items decline in August. From August 2003 to August 2004, overall prices edged up 0.1 percent, while the all items less food and energy index decreased 0.6 percent. Local Consumer Price Index (CPI) data are not seasonally adjusted.

From June to August the 14.2 percent drop in gasoline prices largely contributed to the 3.2 percent decline in the transportation index. This two month decline is in contrast to the past 12 months, during which the Seattle transportation index increased 1.6 percent with drivers paying 10.0 percent more at the pump for gasoline.

Meanwhile, the housing index increased 0.5 percent for the two months ending August, in contrast to a fall of 1.2 percent during the past 12 months, the largest over the year decrease since the 1998 revision in the CPI. Shelter, the primary component of housing, increased 0.4 percent over the past two months. Over the past 12 months, Seattle shelter prices fell 2.1 percent which was also the largest over-the-year decrease in shelter since the 1998 CPI revision. Within shelter, for the two months ending in August, the rent of primary residence index edged up 0.1 percent and the owners' equivalent rent of primary residence index increased 0.7 percent. Fuels and utilities inched up 0.1 percent since June and advanced 3.4 percent over the past 12 months. Prices for household furnishings and operations increased 1.1 percent for the two month period, and were up 2.0 percent from one year ago.

From June to August, food and beverages prices decreased by 0.6 percent, but over-the-year were 0.9 percent higher. Grocery prices, as measured by food at home, declined 1.4 percent for the past two months, and were 1.0 percent lower than a year ago. Food away from home advanced 1.2 percent from June to August and by 4.1 percent for the latest twelve month period. Alcoholic beverages prices declined 0.9 percent over the last two months.

The recreation index was unchanged during the recent two month period but dropped 9.4 percent during the past 12 months.

Medical care prices moved up 0.4 percent during the latest two-month period and rose 4.3 percent over the year.

Apparel prices increased 0.4 percent over the past 2 months. Since August 2003, apparel prices have increased 6.7 percent, the largest 12 month increase since the 1998 CPI revision.

Education and communication prices advanced 0.6 percent from June to August and were 4.0 percent higher than last year's level.

Prices for other goods and services increased 2.7 percent during the past two months, and rose 2.9 percent over the last 12 months.

The All Items, Consumer Price Index for All Urban Consumers (CPI-U) in the Seattle-Tacoma-Bremerton Consolidated Metropolitan Statistical Area for August 2004 is 194.6 (1982-84=100). This means a market basket of goods and services that cost $100.00 in 1982-84 would have cost $194.60 in August 2004.

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