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June 3, 2004 Some Costs Up Sharply for Midwest Consumers Inflation in the Midwest was 2.1 percent in 2003, according to Debra Pankow, North Dakota State University Extension Service family economics specialist. However, many consumers may be suffering much higher costs of living than this statistic indicates, she says. Rural families who travel considerable distances to work and school are encountering household budget changes, as motor fuel prices soar to record levels. Fuel costs were up 10.9 percent in 2003 for U.S. consumers and up 18.0 percent for Midwest consumers, according to the Bureau of Labor Statistics. Prices continue to rise in 2004. Somewhat less publicized rising costs are those of milk and college tuition. “Families with college students will notice a jump next fall when tuition hikes take effect,” Pankow says. “And, any family consuming a lot of milk or milk products has certainly noticed an increase in price.” Medical care costs are also on the rise, with the United States feeling a 4.7 percent increase in 2003, while the Midwest saw a greater 5.4 percent increase. Although the cost of medical care was rising faster for Midwesterners, expenses in several other categories including housing, food and apparel had risen less than the national increase. “One expense category, apparel, actually decreased .7 percent,” says Pankow. The statistics by the Bureau of Labor Statistics are based on the Consumer Price Index (CPI). The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of goods and services. “It is important to understand that the Bureau of Labor Statistics bases the market baskets and pricing procedures for the CPI on the experience of the relevant average household, not on any specific family or individual,” Pankow says. “It is unlikely that your experience will correspond precisely with either the national indexes or those for specific cities or regions.” For more information, contact Pankow at (701) 231-8593 or debra.pankow@ndsu.nodak.edu. ### Source:
Debra Pankow, (701) 231-8593, debra.pankow@ndsu.nodak.edu
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North Dakota State University |
