By Jim Cline and Kate Kremer
The Bureau of Labor Statistics just released CPI report that reports the August Seattle CPI-W at 2.7%, one full percentage point ahead of the All Cities number. These numbers are virtually identical to the last bimonthly (June) report in which the Seattle Index was reported at 2.7% and the all cities Index was reported at 1.6%. This chart shows the last 12 months of CPI-W data:
Here’s a table that also that shows the Seattle and All City W numbers alongside some other relevant West Coast inflation indices:
| CPI INDEX* | CPI-W | CPI-U | |
| All-Cities (Aug 2012) | 1.7% | 1.7% | |
| Seattle (Aug 2012) | 2.7% | 2.7% | |
| West Coast (Aug 2012) | 2.0% | 2.1% | |
| West Coast-Class B/C (Aug 2012) | 1.3% | 1.3% | |
| Portland -Salem (First Half 2012) | 2.2% | 2.5% |
In our article reporting the June inflation number, we summarized our view on the Seattle inflation Index:
As our long term readers are aware, we have recommended adopting the Seattle index over the National index. While there is an ebb and flow in the dueling sets of numbers, the Seattle index has historically outperformed the All-Cities index and we anticipate that trend will resume with the number of reports and indicators, revealing that the Seattle economy will outgrow the national economy in the near term.
That more rapid growth is anticipated to place inflationary pressures on housing and wages.
We continue to adhere to this recommendation. Recent economic reports continue to show the Seattle economy growing at a healthier pace in the national economy. That growth differential is likely to directly translate into an inflation differential.
