Core CPI rises an inline 4% in September; broader inflation up 5.4%

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in
September on a seasonally adjusted basis after rising 0.3 percent in August, the
U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all
items index increased 5.4 percent before seasonal adjustment.

The indexes for food and shelter rose in September and together contributed more
than half of the monthly all items seasonally adjusted increase. The index for
food rose 0.9 percent, with the index for food at home increasing 1.2 percent.
The energy index increased 1.3 percent, with the gasoline index rising
1.2 percent.

The index for all items less food and energy rose 0.2 percent in September,
after increasing 0.1 percent in August. Along with the index for shelter, the
indexes for new vehicles, household furnishings and operations, and motor
vehicle insurance also rose in September. The indexes for airline fares, apparel,
and used cars and trucks all declined over the month.  

The all items index rose 5.4 percent for the 12 months ending September, compared
to a 5.3-percent rise for the period ending August. The index for all items less
food and energy rose 4.0 percent over the last 12 months, the same increase as
the period ending August. The energy index rose 24.8 percent over the last 12
months, and the food index increased 4.6 percent over that period. 

Food

The food index increased 0.9 percent in September, following a smaller 0.4-percent
increase in August. The food at home index increased 1.2 percent over the month as
all six major grocery store food group indexes rose. The index for meats, poultry,
fish, and eggs rose 2.2 percent over the month as the index for beef rose
4.8 percent. The index for other food at home increased 1.1 percent in September
after rising 0.6 percent in August. The index for nonalcoholic beverages increased
1.2 percent in September, its fourth consecutive monthly increase. The index for
fruits and vegetables rose 0.6 percent in September, a larger increase than the
0.2-percent increase reported in August. The index for cereals and bakery products
increased 1.1 percent over the month, while the index for dairy and related
products rose 0.7 percent.

The food away from home index rose 0.5 percent in September after increasing
0.4 percent in August. The indexes for limited service meals and for full service
meals both increased 0.6 percent in September. These increases offset a decline
in the index for food at employee sites and schools, which continued to fall,
decreasing 6.4 percent in September.

The food at home index rose 4.5 percent over the past 12 months as all of the six
major grocery store food group indexes increased over the period. The largest
increase was the index for meats, poultry, fish, and eggs, which increased
10.5 percent as the index for beef rose 17.6 percent over the year. The smallest
increase was the dairy and related products index, which rose 0.6 percent over the
last 12 months. The index for food away from home rose 4.7 percent over the last
year. The index for limited service meals rose 6.7 percent over the last 12 months,
and the index for full service meals rose 5.2 percent, while the index for food at
employee sites and schools declined sharply.  

Energy

The energy index rose 1.3 percent in September, its fourth consecutive monthly
increase. The gasoline index rose 1.2 percent in September after increasing
2.8 percent in August. (Before seasonal adjustment, gasoline prices rose
0.3 percent in September.) The electricity index increased 0.8 percent in
September following a 1.0-percent increase the prior month. The index for natural
gas also increased in September, rising 2.7 percent; this was its eighth
consecutive monthly increase.  

The energy index rose 24.8 percent over the past 12 months as all the major energy
component indexes increased. The gasoline index rose 42.1 percent over the last
year. The index for electricity increased 5.2 percent and the index for natural
gas rose 20.6 percent over the last 12 months.

All items less food and energy

The index for all items less food and energy rose 0.2 percent in September. The
shelter index increased over the month, rising 0.4 percent. The index for rent
rose 0.5 percent in September, while the index for owners’ equivalent rent rose
0.4 percent over the month. Other indexes that increased over the month include
the index for new vehicles, which rose 1.3 percent following a 1.2-percent
increase the previous month; and the index for household furnishings and
operations, which increased 1.0 percent in September as the indexes for furniture
and bedding and for appliances rose. 

The motor vehicle insurance index rose 2.1 percent in September, after falling
2.8 percent in August. The index for communication and the index for education
both increased 0.4 percent over the month. The recreation index rose 0.2 percent
in September after increasing 0.5 percent the prior month. 

In contrast to these increases, several indexes declined in September. The index
for airline fares continued to fall sharply, decreasing 6.4 percent over the month
after falling 9.1 percent in August. The apparel index also decreased in September,
declining 1.1 percent over the month after rising 0.4 percent in the previous
month. The index for used cars and trucks fell 0.7 percent this month, continuing
to decline after it decreased 1.5 percent in August.

The medical care index was unchanged in September, with its component indexes
mixed. The index for prescription drugs rose 0.8 percent over the month and the
index for hospital services increased 0.1 percent. In contrast, the physicians’
services index declined 0.3 percent in September. 

The index for all items less food and energy rose 4.0 percent over the past
12 months. The index for used cars and trucks increased 24.4 percent over the
span. The index for new vehicles rose 8.7 percent, the largest 12-month increase
since the period ending September 1980. The shelter index increased 3.2 percent
over the last 12 months, and the household furnishings and operations index rose
5.1 percent. The index for medical care rose 0.4 percent over the last year, with
the index for physicians’ services rising 3.8 percent and the index for hospital
services increasing 3.2 percent. The prescription drugs index fell 1.6 percent,
one of the few indexes to show a 12-month decline. 

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 5.4 percent
over the last 12 months to an index level of 274.310 (1982-84=100). For the month,
the index increased 0.3 percent prior to seasonal adjustment.  

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)
increased 5.9 percent over the last 12 months to an index level of 269.086
(1982-84=100). For the month, the index rose 0.3 percent prior to seasonal
adjustment.  

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased
5.3 percent over the last 12 months. For the month, the index increased
0.3 percent on a not seasonally adjusted basis. Please note that the indexes
for the past 10 to 12 months are subject to revision.