Prices across the United States rose at an estimated annual rate of 2.6% during the last six months of 2000. This rate is slightly higher than the 2.5% annual increase during the same period in 1999 but lower than the 3.3% in the first half of 2000. Prices rose at an estimated annual rate of 2.7% in St. Louis and 3.0% in Kansas City during the last six months of 2000. While St. Louis' rate is only slightly higher than the 2.5% during the same time in 1999, Kansas City's rate sharply increased compared to the 2.3% during the last half of 1999. Compared to the first half of 2000, St. Louis (3.6%) and Kansas City (4.1%) experienced sharp decreases in inflation.
The inflation rate is generally defined as the rate of change of the Consumer Price Index (CPI) as measured by the US Bureau of Labor Statistics (BLS). The Consumer Price Index (CPI) is a measure of the average change in prices over time in a market basket of goods and services. The CPI is based on prices of food, clothing, shelter, fuels, transportation fares, charges for medical and dental services, drugs, and other goods and services that people buy for day-to-day living. The CPI indexes prices to 1982-1984 levels (i.e., the CPI in 1983 is 100). The BLS calculates the CPI for 87 urban areas, including St. Louis and Kansas City. The CPI is not calculated for states as a whole. In general, inflation rates in Missouri's urban areas tend to follow national trends, though they experience a higher level of volatility. Despite the higher rates of inflation in 2000, estimates by of Living among states during the year.