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;



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.




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

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DeadFred's picture

Core CPI is below expectations. That's bullish because it means Ben can print... Oh yeah that doesn't work anymore.

GetZeeGold's picture



No inflation.....unless you plan on doing something.....or eating something.....and then it's going to cost you bigtime.


LawsofPhysics's picture

"No inflation.....unless you plan on doing or producing anything"  - Fixed

Sweet Chicken's picture

Who the fuck is your shadow junker?!?!? Every post of yours always has a down vote from someone.

<carry on>

Stackers's picture

I've seen as much as 50% inflation in my "day job" from prices just 2 years ago.

HoofHearted's picture

Luckily Granny will be getting 1.7% more in her Social Security check next year. If she stocks up now, then she won't have to wrry about the 0.6% per month rise in prices we've seen MoM for the last couple....

francis_sawyer's picture

@Sweet Chicken

my 'shadow junker' belongs to the PRE-CRIME division...

fuu's picture

francis_sawyer = Law of Physics?!?

francis_sawyer's picture

Nope ~ the LOP is unique... Just stating that we ALL carry around our own personal 'junkers' at ZH...

A Nanny Moose's picture

A Metaphor for the productive, on whose backs the unproductive ride.

economics9698's picture

My wife works in the restaurant industry and they have been chang9ing every menu and recipe for all of 2012 just to keep pace with inflation.  The CPI is useless and with the politics involved even more useless.  Food inflation is running about 10%.

ParkAveFlasher's picture

Tell her use smaller plates, heavier forks, and thicker glasses.

A nickel ain't worth a dime no more.  - Yogi Berra 

Cathartes Aura's picture

the substitution of crappier ingredients to shave a few pennies off the price is ongoing. . . if you eat supermarket-made foods, might want to watch the labels, more fake "mouth feel" kind of stuff is popping up everywhere.

(not applying this to your wife's space, just paying attention to the dilutions)

Sweet Chicken's picture



Pre-crime indeed! Then again we all have those we love to hate!!! :P

francis_sawyer's picture

I junk myself for kicks when I get bored...

fuu's picture

If a bored person were to junk every post in a thread people freak out almost instantly.

If a bored person up votes every post in a thread no one notices.

Six months running now. It must be a bias of some kind at work.

francis_sawyer's picture

Sounds like Maria Bartiromo &/or the folks over at Liberty 33 when they're looking at the S&P...

GubbermintWorker's picture

Canned dog food is on sale now!

TheFourthStooge-ing's picture

Vacuum packed Gaines Burgers from 1991 are being sold as senior citizen MREs.

Cathartes Aura's picture

they'd be healthier than the nasty additives & GMO grains the "pet fud scientists" have concocted in the latter years. . .

LMAOLORI's picture



Limousine Liberals throwing granny under the inflation bus for the Fed and it's member banks imagine that 


The Government Will Never End the Fed but the Fed is Destined to Die Anyway


The Federal Reserve is the mother's milk of empire, tyranny and statism.  Big government and central banks exist for no purpose except to massive concentrate wealth and power.  Moreover, it's absolutely true that the phrase "99% vs the 1%" is indeed a valid premise even if it was hatched by socialists on the left.  What the progressive left fails to grasp is that it was liberal progressive Democrats who delivered unto us the Federal Reserve that was empowered to transfer wealth from the 99% to the 1%.

In many way, the progressive left considers itself intellectually superior to liberty because, control freaks that they are, they believe that there isn't anything they can't control or shouldn't control, given their totalitarian mindsets. . Hence, they have an enormous propensity to align themselves with big corporatist and big bankster money, the very same folks they claim to abhor as the blood suckers of humanity.  It's a situation of where progressive police state ideology butts heads with the real power - the power of big statist money.  In the end, it's always about power and never liberty or even the the prosperity of the people.   The first victims of most Marxists revolutions are typically the bourgeois, the middle class, and the backbone of any flourishing and prosperous society.  Marxist revolutions are never about revolts against capitalism but always about joining with the powerful to share totalitarian power. 

Communist party officials always had the finest homes and the finest foods. They always exempted themselves from breadlines as the hoards of lowly humanity, the proletariat they claim to love, waited in line for hours to buy a loaf of moldy and stale bread.  The commie officials always had the best of everything from caviar to imported French wines.  From Stalinists and Marxists to the limousine liberals of the west, these folks thoroughly enjoy their rockstar status, power and money.


CoolBeans's picture

Trolls.  When I see that, I make it a point, when time permits, to go through everyone's post and vote "up" those I agree with.  

greenEagles's picture

I gave a homeless guy my change yesterday in Manhattan and he threw the pennies on the ground.  Yep, definitely no inflation...

Cathartes Aura's picture

be cool if everyone did that, every time they got change, etc. - just toss the pennies. . . after a while, folks MIGHT even be curious about the trending.

aint no fortunate son's picture

How odd - gas is a big input into retail sales, cheered by the street and the media puppets... the higher the better, because we're consuming baby! But when its included in CPI it's evil incarnate and therefore expunged wherever possible from the dialogue... how odd.

AGuy's picture

Core Inflation is rising too, it's just hidden. What use to last 5 to 7 years barely lasts 3 years. Now I have to buy durables twice as often because has crap quality. Thats means the effective rate of many durable goods has increased by about 50%.  The price hasn't changed by the quality sure has!

Notice when something breaks in your car, you can't just buy the replacement part, that probably is under 20 dollars. Now you have to buy the whole assembly which can cost hundreds to even a thousand dollars. How is that saving me money?

I replaced a Kitchen Fauct about 2 years ago to replace a older model (going on 12+ years) where the gaskets wore out. Since replacement gaskets were no longer available, the only option was to replace the faucet. The replacement was a bit more expensive (same brand as the older model), but it was pure crap, It failed after about 2 years. I ended up replacing it with a much, much more expensive faucet ($750+). <SARC>Can someone please explain to me how there is no inflation and how I am better off?</SARC>

TheCanadianAustrian's picture

I can assure you that the inflation that everyone speaks of is nonexistent. I've been spending the past year and a half measuring the inflation effect on my basket of goods at the grocery store. Just this weekend I filled my cart with flash memory cards, sterling silverware, natural gas, and expired greek yogurt. Of course, like any shopper does, I adjust my basket of goods according to natural fluctuations in the market. So please, everyone, stop the fearmongering.

francis_sawyer's picture

We need to elect a Muslim President so we can declare Ramadan & don't have to eat & can travel around on flying carpets... Oh wait!...

unrulian's picture

Or a Mormon president so we can all wait for an alien to save us...or is that scientology??

GetZeeGold's picture



They shoot Catholics.....don't they?

GetZeeGold's picture



Never take your eyes off that cat!

BeaverFever's picture

I'm shorting magical long underwear.

kito's picture

we need a mormon president so he can be married to the bankers and the pentagon...........

GetZeeGold's picture



At least it would be a nice change.

kito's picture

what change??? can you be so naive??.......................

GetZeeGold's picture



Dude.....we're over three years into it.....you don't feel it?


TWSceptic's picture

"Change we can be naive in" :)

GetZeeGold's picture



You need to spke that crap!

GetZeeGold's picture



At least it would be a nice change......yes I said it twice.

Dr. Engali's picture

It's a good thing Americans have been storing up plenty of fat reserves for the lean times.

JPM Hater001's picture

I've contended 2 things for a long time:

1) We will take longer to starve to death than the average nation

2) We manufacture nothing so we can only go up after the crash

Shizzmoney's picture

Folks, before the election night: Make sure you stock up.  Buy soup, water, ibuprofen, ammo, and first aid shit.

And if we are lucky to stave off riots then, do it again before na 1.


You'll thank yourself that you did.

JPM Hater001's picture

I refuse to pay for water.  Buy a jug people...

CoolBeans's picture

I'm nearly in the middle of nowhere and could use a desalinator that's fairly efficient -- just need to save up more...costly buggers.  We store and have some water around but in the long-term we would have to desalinate.

Harbanger's picture

I have one, the concept is simple and it’s not hard to build with a little planning. You can make different variations of this yourself:  Flat black metal pan with a slanted glass sheet above that collects condensation to a container.  A solar water pump that runs fresh sea water thru the pan on a regular high tide cycle.  A 4 x 8 pan will make a couple of gallons/day.


tip e. canoe's picture

cool back atya, gracias

question though: does that process demineralize or just take the salt out?

Harbanger's picture

It distills so it removes all salts/minerals and is slightly acidic. I made a section that filters some sea water before it dries in the sun so I can make some sea salt. You can use a small amount of this to remineralize the water. I use it in my food.  You can also use some basmati rice or run the water thru a mineral filter.