Except For Food And Gas, September Inflation Barely Higher

Tyler Durden's picture

September core CPI, ex such trivial, hedonically displacable items as food and energy (remember: when in doubt, just nibble on your obsolete first generation iPad, for which you waited hours in line - cause Bill Dudley said so) rose a tiny 0.1%, on expectations of a 0.2% pick up. Of course, for those lucky few who still get to eat and/or have a job to drive to, inflation rose by 0.6% in September from August, higher than expectations of a 0.5% increase. Luckily, in America the intersection of the Venn Diagrams for those who i) eat and ii) drive is so small it is barely worth mentioning...

The less than pretty chart:

Another less than pretty chart (via FRED):

From the report:

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent in September on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.0 percent before seasonal adjustment. For the second month in a row, the substantial increase in the all items index was mostly the result of an increase in the gasoline index, which rose 7.0 percent in September after increasing 9.0 percent in August. The other major energy indexes increased in September as well. The food index increased 0.1 percent in September; the index for food at home was unchanged as major grocery store food indexes continue to be mixed. The index for all items less food and energy rose 0.1 percent for the third month in a row. Indexes for shelter, medical care, apparel, and airline fares were among those that increased, while the indexes for used cars and trucks, new vehicles, personal care, and household furnishings and operations all declined.

The segment breakdown:

What about food and energy;

Food

 

The food index rose 0.1 percent in September after a 0.2 percent increase in August. The index for food at home was unchanged in September after rising 0.1 percent the previous month. Among major grocery store food groups, the largest increase in September was in the index for nonalcoholic beverages, which rose 0.9 percent in September after declining in July and August. The indexes for dairy and related products and for other food at home also rose in September. The largest decline was for the index for meats, poultry, fish, and eggs, which fell 0.6 percent after rising in each of the three previous months. Also declining was the index for fruits and vegetables, which fell 0.4 percent as the fresh fruits index declined 0.9 percent. The index for cereals and bakery products fell 0.1 percent. The index for food at home has risen 0.8 percent over the last 12 months, the smallest figure since August 2010. The index for food away from home increased 0.2 percent in September and has risen 2.8 percent  over the last 12 months.

 

Energy

 

The energy index rose 4.5 percent in September after a 5.6 percent increase in August. The gasoline index increased 7.0 percent in September, its third straight increase. (Before seasonal adjustment, gasoline prices increased 4.1 percent in September.) Other energy indexes had increases similar to August: The fuel oil index increased 4.1 percent in September after rising 4.6 percent in August; the index for natural gas rose 2.0 percent in September following a 2.8 percent August increase; and the electricity index repeated its August increase of 0.2 percent. Over the last 12 months, the energy index has risen 2.3 percent (the August 12-month change was a 0.6 percent decline). The gasoline index has risen 6.8 percent over the last 12 months, and the index for fuel oil has increased 4.0 percent. In contrast, the index for natural gas has fallen 10.7 percent and the electricity index has declined 1.5 percent.

As for everything else...

All items less food and energy

 

The index for all items less food and energy increased 0.1 percent in September, the same increase as in July and August. The index for shelter repeated its August increase of 0.2 percent, with the rent index rising 0.3 percent and the index for owners’ equivalent rent increasing 0.2 percent. The medical care index rose 0.3 percent in September, with the hospital services index rising 0.6 percent. The index for airline fares rose 1.4 percent in September after declining in each of the three previous months. The apparel index turned up in September, rising 0.3 percent after declining 0.5 percent in August. Similarly, the tobacco index rose 0.2 percent in September after an August decline. In contrast to these increases, the index for used cars and trucks posted its largest decline since February 2009, falling 1.4 percent. The index for new vehicles turned down in September, decreasing 0.1 percent after increasing 0.2 percent in August. The indexes for household furnishings and operations and personal care also declined in September.

Full report here