The Consumer Price Index for All Urban Consumers (CPI-U) edged up by 0.4% on a seasonally adjusted basis in October, reported the U.S. Bureau of Labor Statistics. This is the identical percentage increase seen in September. Year-over-year, prior to seasonal adjustment the all items index rose by 7.7%.
The primary contributors to the percentage rise seen in October were a rise in shelter costs, food, and the price of gasoline.
“The index for shelter contributed over half of the monthly all items increase, with the indexes for gasoline and food also increasing,” explained the Bureau of Labor Statistics in its monthly report.
For American consumers, this means they paid more for shelter costs, and food items at grocery stores, in addition to paying more at the gas pumps. Ultimately, this denotes that many Americans are still contending with meeting basic daily needs.
Despite the fact that core inflation decelerated in October, nonetheless, the Federal Reserve increased interest rates to their highest levels since 2008.
(Source: U.S. Bureau of Labor Statistics)
Food
In October, the index for food rose 0.6%. The index for food at home, which indicates foodstuffs at grocery stores increased by 0.4%. It should be noted that this marks the lowest monthly percentage increase seen since December 2021.
Since this time last year, American consumers have paid more for food items bought at grocery stores, as the index for food at home increased by 12.4%. Year-over-year, grocery items that were the main contributors to the overall increase in the index included cereals and bakery products, dairy and related products, in addition to meats, poultry, fish, and eggs.
Gas Prices
American consumers paid more at the gas pumps in October. Gas prices increased by 4% in October, after consumers enjoyed a bit of respite with lower prices for gasoline seen over the previous three months.
In October, prior to seasonal adjustment, the price of gasoline increased by 3.1%.
Over the last 12-month period, the price of gasoline rose by 17.5%.
(Source: U.S. Bureau of Labor Statistics)
All Items Less Food and Energy
In October, the all items less food and energy index increased 0.3%. American consumers continued to pay more for shelter, as the index grew 0.8% over the month. It should be noted that this is the largest monthly rise in shelter costs since August 1990.
Furthermore, rent prices also rose 0.7%, as did the index for owners’ equivalent rent by 0.6%, which is correlated to the value of housing prices.
Conversely, Americans paid less for medical costs in October. The index for medical care dropped 0.5%. Over the month, major medical care composite indexes saw percentage declines. The hospital services index fell 0.2%, and the price of prescription drugs dropped 0.1%.
Year-over-year, the all items less food and energy index increased by 6.3%. Over the last 12-month span, 6.9%. Likewise, the index for medical care increased by 5% since this time last year.
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Source Cited: https://www.bls.gov/news.release/archives/cpi_11102022.htm
Sarah has been writing on the topics of politics, history and finance for over a decade. She is currently an editor at CPI Inflation Calculator, covering the topics of CPI, inflation, US economy and economic commentary.
