Cost of Living Update 2022
In the last update in Q3 2021, the cost of living was decreasing and in this quarter (Q2) 2022 we can still see the cost’s declining. We are in a post-COVID period and while other locations are experiencing inflation, the Capital Region has seen an overall decrease in cost of living. The only two significant increase observed in the data was transportation and utilities. The Composite Index, which serves as an aggregate of all the categories measures in the COLI Index. The Composite Index has been steadily decreasing in Q3 2021 it was at 106.3 and in Q2 2022 it has reached 103.4.
Groceries, Housing and Miscellaneous Goods cost have decreased in the Capital Region
Housing and Miscellaneous Goods had a significant deceased in Q2 2022. Housing cost reached 105.3 in Q3 2021. In Q2 2022 cost dropped, declining to 96.7 from 106.2 in Q1 2022, in less than a year. Miscellaneous Goods had reached 110 in Q3 2021, and Q1 2022 was 113.9 and it has significantly decreased to 107.5 by Q2 2022.
Health Care saw a slight decrease from Q1 2022 111.3 to 109.7 in Q2 2022. In the past year the cost had been increasing compared to Q3 2020 which was at 101.2 followed by Q2 2021 which was at 102.1. Groceries also had a slight decrease from Q1 2022 112.9 to 109.7 in Q2 2022. There was a slight decrease compared from Q4 2020 114.8.Both groceries and miscellaneous goods have had a similar trend where the cost are gradually decreasing in the recent quarters.
Transportation and Utilities Cost Increase
In Q3 2021 transportation was its lowest cost at 97.1. In Q2 2022 it reached 103.4 compared to the Q1 2022 costs at 100.8. The last time the transportation cost increased was in Q3 2020 when it reached 104.5. Utilities also saw a significant increase in cost. Q1 2022 the cost dropped to 95.4 compared to Q2 2022 which jumped to 100.2. Utility cost had gradually been increasing from 96 in Q1 2021 to 98.9 in Q3 2021. The last time utilities had reached its peak was in Q3 2020, it was at 103.4. Since quarter 3 (Q3) 2021 both transportation and utilities have had a drop in a quarter followed by a significant increase by the following year.
What is the Cost of Living Index?
Compiled by the Council for Community and Economic Research, the Cost of Living (COLI) Index collects data from cities across the country and tracks changes in the cost of vital goods and services that contribute to an overall cost of living. Data on the cost of Grocery Items, Health Care, Housing, Miscellaneous Goods and Services, Transportation, and Utilities are collected and compiled into separate indexes, and a Composite Index is created which combines these separate indexes and shows the general trend for the cost of living in different cities and metropolitan areas. The data for the Capital Region is collected quarterly by graduate students enrolled in the Department of Geography and Planning at the University at Albany and is funded through a partnership among CDRPC, the Capital Region Chamber of Commerce, and the Center for Economic Growth. The methodology, data requirements, and parameters of the data collected are consistent nationwide to assure comparability among the participating regions.
When data is collected, it is converted to a scale that puts the average cost for each index at 100.