Prices in Chicago rise slightly

BY KELLEN M. HENRY — MEDILL NEWS SERVICE

Consumer prices in the Chicago area rose 0.6 percent last month, riding on an increase in the price of gasoline in June, while other price areas remained stagnant, the Bureau of Labor Statistics reported on Wednesday.

The department’s Consumer Price Index measures the average price of consumer goods and services purchased by households both nationwide and regionally. Nationally, the CPI rose 0.7 percent in June from the previous month, due to higher energy and automobile prices.

The monthly results are a good indication of whether prices related to the cost of living are becoming inflated.

Despite a month-to-month increase, prices in the Midwest are still down about 1.7 percent from last year, indicating inflation isn’t yet a concern in the midst of the economic turmoil, according to the Wall Street Journal. The Federal Reserve tries to keep the rate of inflation around 2 percent to promote price stability and economic growth.

The price of gas across the Midwest rose by 17.5 percent in June from May, compared with a 16.4 percent increase nationally. In Illinois, gas was about ten cents higher than the national average of $2.50 per gallon for regular grade on Wednesday, according to AAA’s Daily Fuel Gauge Report.

While fuel was the most significant increase on this month’s report, economists typically look at consumer prices sans food and energy prices because these prices tend to be more volatile than other goods and services.

Nationally and in the Midwest, prices increased by .1 percent last month from May, after energy and food prices were removed.

In Chicago, consumer prices for transportation and housing also contributed modest increases from last month.  Prices for food and beverages, medical care, and education and communication were little changed from May.

Tags: Chicago economy, CPI, deflation, economy, inflation