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Healthcare & Housing Cost Surge Sparks Biggest Rise In Core Consumer Prices Rise In 16 Months
Following September's strongest Core CPI gain since June 2014, October accelerated that modestly with CPI ex food and energy rising 1.9% YoY. Broad CPI rose 0.2% YoY (slightly better than the 0.1% expected rise) - the highest sicne December. Month-over-month saw new and used vehicle prices drop, Apparel prices drop 0.8% (most since Dec 2014), PCs drop 0.9%, but was notably offset by the bigger-weighting in Medical Care which rose 0.7% MoM (3.0% YoY) and Shelter rose 3.2% YoY.
The Breakdown....
The index for all items less food and energy increased 0.2 percent in October, the same increase as the previous month.
- The shelter index continued to rise, increasing 0.3 percent for the second consecutive month. The rent index rose 0.3 percent and the index for owners' equivalent rent advanced 0.2 percent. The index for lodging away from home increased 0.8 percent, the same increase as in September.
- The medical care index rose 0.7 percent in October, its largest increase since April. The hospital services index increased 2.0 percent, the index for prescription drugs rose 0.1 percent and the physicians' services index was unchanged. The index for personal care increased 0.5 percent in October, its largest increase since January.
- The index for airline fares turned up in October, rising 1.5 percent and ending a string of three consecutive declines. The index for recreation increased 0.2 percent, the index for alcoholic beverages rose 0.6 percent, and the tobacco index advanced 0.4 percent.
In contrast to these increases, the apparel index declined in October, falling 0.8 percent, its largest decline since December 2014. The index for new vehicles, which fell 0.1 percent in September, fell 0.2 percent in October. The index for used cars and trucks declined for the sixth month in a row, falling 0.3 percent. The index for household furnishings and operations also declined in October, falling 0.1 percent.
The index for all items less food and energy has risen 1.9 percent over the past 12 months; this is the same figure as the 12 months ending September. Indexes that have increased more rapidly include
shelter (3.2 percent) and medical care (3.0 percent). Among the indexes that posted smaller increases are recreation (0.6 percent) and new vehicles (0.1 percent). Indexes that declined over the past year include airline fares (-5.2 percent), apparel (-1.9 percent) and used cars and trucks (-1.4 percent).
Indexes that have increased more rapidly include shelter (3.2 percent) and medical care (3.0 percent).
Charts: Bloomberg
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If sales taxes, property taxes and income taxes aren't included in CPI, GDP and other economic indicator indices, why is healthcare? It's just a tax really, right Supreme Fuckface Roberts?
It's all a clear choice that America's discretionary spending is focused upon the important things in life like McMansions and Cadillac Healthcare plans rather than frivolous indulgences like eating beef (Try the crickets, they're great!) or driving which contribute to global warming thereby causing terrorism. Now let us all hold hands and sing Kumbayah
-Al Gore
Real life now sounds all so ever apolyptic a la Margaret Atwood .... which is Not Good
Obamacaregate. Repugnicans are so feeble they can't even try to impeach him. It takes a group of concerned Gubnors to step in and try to stop the insane importation of Barry's "vetted refugees."
Remember, Germany and France vetted theirs. How well is that working out?
Thank goodness "Do Nothing" Boner resigned.
Well, at least he "did nothing" compared to the current puke in the Speakers chair.
Undoubtedly Paul Ryan is on board with Obama's plan of importing 100,000 so called Syrian refugees.
First it was only gonna be 10,000 refugees, now it's 100,000, WTF!
When its all said and done it'll probably be closer to a quarter million, or who really knows what the exact amount is cause everything out of D.C. is a lie.
And for our next hedonic quality adjustment, "herbal tea" is substituted for bypass surgery.
I'm so happy there is no inflation...
/s
It makes sense that this information was delayed until after the adjustment to Social Security was announced.
another bullshit number that DOES NOT INCLUDE THINGS PEOPLE NEED TO LIVE DAILY... add in food & gas
AND BULLSHIT MEDICAL WENT UP 3%... everyone I know who pays for their own insurance HAD THEIR RATES RAISE 30+%
lies. the health insurance increase alone was more than 2% of family gdp.
Medical care rose 3% year over year per official stats. It actually rose well over 10% then.
US official CPI for 2014 was 0.8%. Chapwood Index inflation was 9.7%. So real inflation was 1212.5% of official inflation.
Even the guests on National Propaganda Radio (NPR) admiited the other day most Obamacare policies ar soaring 7-12% or more and NOT the official 3%.
I doubt they will ever be invited back.
The give-me-more public workers want their fat pensions. Higher property taxes.
Know HS teachers collecting $100K/year pensions around the big metro areas. Same with cops and firemen.
Usually property tax increases show up as increased rents.
In the county in which we last lived - property taxes have increased between 2 to 15 % this year (depending on municipality). That's a killer.
The sooner the Social Suck "Trust Fund" dries up .... the sooner we can get on General Suck ?
Forced into Obamacare in 2014 when they cancelled our policy. Year one, $152/mo $2500/ded, year two, $254/mo $2500/ded, now, year three, $274/mo $6500/ded.
That's an 80% premium increase and 250% deductible increase in 2 years.
Now that's inflation baby!!
Thanks Barry . . . .
Food and Housing costs are rising because of the sh*t-tide of unwanted foreign dollars coming back to our shores in search of physical assets to buy.
Remember QE money printing by the Fed only buys Wall St bank toxic assets once and is then rented back by the Fed to keep the money out of circulation to prevent inflation.
The Fed can't prevent foreigners from unloading their inflated debased dollars here causing inflation in housing and food.
Obamacare medical cost inflation was government inflicted.
I love how power prices are up.
Guess I can buy more apparel now.
yes! at basement prices... APPCQ !
/sarc
They can release this now... Because they already set 'no increase' for Social Security next year!
The under reporting of inflation is just part of the war on Baby Boomers - by limiting any increases in senior benefits and destroying the value of any savings.
Christmas sales are going to be just fantastic this year.