The West Coast Cities Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) tracks the average change in prices for goods and services purchased by people who work in urban areas in the West Coast Census area. It shows how much more these urban workers have to spend over time on essentials like food, housing, and healthcare. The CPI-W is a measure of inflation.

For city governments, tracking the CPI-W is important for adjusting benefits, setting budget priorities, and planning for economic challenges. It helps ensure financial planning keeps up with inflation and guides decision-making.

The numbers show the West Coast CPI-W spiked in 2021 and 2022, during the Covid-19 pandemic. This spike also happened nationally. The six and seven percent seen in 2021 and 2022 were higher than the City had seen in over 30 years and put considerable strain on both consumer and City finances.

In the last few years CPI has decelerated to more normal levels. It is normal for the costs of goods and services to rise overtime in a healthy economic environment, and the Federal Reserve has a target inflation rate of two percent.

The City of Portland utilizes the CPI-W for the West Coast Census area because Bureau of Labor Statistics stopped tracking the Portland Metro’s CPI in 2018.

The Bureau of Labor Statistics generates a monthly CPI-W number and the City Budget Office takes that information and calculates an average rate of change for the year.

For additional information about Western Consumer Price Indices, visit Bureau of Labor Statistics.