Core CPI Remains Above Fed Mandated 2% For 11th Straight Month As Cost Of Living Surges

Tyler Durden's picture

Consumer Price rises broadly met expectations across the board with headline CPI jumping from +1.1% YoY to +1.5% YoY - the highest since Oct 2014.

Core CPI (at +2.2% YoY) has now run 11 straight months above The Fed's mandated 2% inflation target.

Once again prescription drug costs rose notably but 'Shelter', 'Rent', and 'Gasoline' costs surged.


The index for all items less food and energy increased 0.1 percent in September after rising 0.3 percent in August. The shelter index increased 0.4 percent in September, reflecting a 0.3-percent increase in the rent index and a 0.4-percent advance in the index for owners' equivalent rent. The index for medical care rose, though the 0.2 percent increase in September was the smallest increase since March. The index for prescription drugs increased 0.8 percent, while the hospital services index was unchanged. The index for motor vehicle insurance continued to rise, increasing 0.4 percent in September. The personal care index increased in September, advancing 0.4 percent. The index for airline fares rose 0.4 percent, following declines in July and August. The index for tobacco also increased 0.4 percent, while the alcoholic beverages index rose 0.3 percent and the education index advanced 0.2 percent.

In contrast to these increases, several indexes declined in September. The index for communication fell 0.8 percent, its largest decline since October 2014, and the apparel index decreased 0.7 percent. The index for used cars and trucks continued to fall, declining 0.3 percent in September. The indexes for new vehicles and for recreation both fell 0.1 percent, while the index for household furnishings and operations was unchanged.

The index for all items less food and energy increased 2.2 percent over the past 12 months. The 12-month increase has stayed in the narrow range of 2.1 percent to 2.3 percent since December 2015. The shelter index has risen 3.4 percent over the last 12 months, and the medical care index has increased 4.9 percent.

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SomethingSomethingDarkSide's picture

Dollar is higher - can ya believe it?  Here's how:

- BOJ devalues Yen

- Investors Yen Carry Trade to buy US Stocks

- Rates up, Dollar up, Stocks.... up!

ThisIsMadness's picture

How is it that the higher the dollar goes, the less I can afford to buy?

ShorTed's picture

It's an excellent question and we can all sympathize with you.  The best solution is to not pay any attention to that and instead focus on what the Kardashians are up to.

Kidbuck's picture

It ain"t Yellens fucking 2% to steal. I will  fuck her in the ass with a rusty railroad tie. But since I will only stick it in 2% of a 50 foot pole she should have nothing to complain about.


luckylongshot's picture

What  is surprising is that supposedly intelligent people still take these figures seriously. The data coming out of the government has been shown to be unreliable for many years. Shadowstats puts inflation at 7% and unemployment at 23% using US Govt methodology from 1990- when it was at least reliable. What this means is that as US GDP figures are affected by inflation, the US GDP needs to be revised down from $18 Trillion to $9 Trillion to get back to reality....and we get to read concerned articles  about a 1% GDP revision....Hello... time for a reality check.

Commander Cody's picture

And why is the Social Security COLA for 2017 only 0.3%?

bornlastnight's picture

COLA will be 0.77% for 2017...just sayin...

rejected's picture

and how much did the medicare costs go up? Something like 10%. 

Yes, Medicare is broke like it's parent SS. That's because they're robbing it to fund Obama-Care. 

Medicare has been corrupted by Obama-Care while SS was outright stolen to fund empire wars. 

Commander Cody's picture

I recommend you check out the SSA website - just sayin'.

bornlastnight's picture

I did...and found out the gov adjusted May, June, July and August down so yes...the COLA will be .3%.


I couldn't edit my original post after I found out how the gov, for the first time in history of issuing CPI-W numbers, actually adjusted four consecutive months downward.



TRUMP 2016!

Kidbuck's picture

Nobody promised you a rose garden.

Commander Cody's picture

But I paid for the plantings!

Arnold's picture

Ran the pig through your Hogwash.

Still got the lipstick on.

GunnerySgtHartman's picture

But according to Auntie Janet, there's no inflation!  Move along, nothing to see here.



Due North's picture

When people realize that the cost of living is really only how well you can hunt, fish, farm, trade, and enjoy your LIFE, I suspect we shall all be better off.

Government needs you to pay taxes's picture

I keep inviting people over for pecan-fed squirrel pie, but NOBODY SHOWS UP.

Kidbuck's picture

I once lived in the center of Minneapolis. Squirrels were cleaning out my little 6' plot of garden. Shot about 6 with my 22 rifle. Braised in pot with onions and carrots. Served to wife and a couple of her best friends for supper. Everyone raved about how good the meat was. Told assembly it was squirrel. Friends never talked to us again. 

Seasmoke's picture

Hey Janet. It's getting expensive out here. And the packages are getting smaller too.

Bill of Rights's picture

Ok so Gold is selling off because? what a fucken joke...

Seasmoke's picture

Because it went above $1260. It's the new hammering level.

J J Pettigrew's picture

so if inflation is .5% for 12 months in a row, is that 6% inflation?

What is the cummulative inflation for the past 8 years of waiting for inflation?


CUMMULATIVE INFLATION SINCE 2008 is 13%....  but still that is considered NO inflation

with ZERO INTEREST RATES the entire time



Dragon HAwk's picture

70% of the economy is  consumer spending and nobody has any Money, Tick Tock, mother fuckers you can only Lie so Long.

 and the So Long has a double meaning.

Government needs you to pay taxes's picture

I'd suggest that while everyone has paper money, nobody can buy anything with it.

Infield_Fly's picture
Infield_Fly (not verified) Oct 18, 2016 8:04 AM

Commodities index in the toilet - below Mar 2009 lows.


So where is the inflation???


Healthcare (goobermint), Eduation (goobermint), Housing (banksters controlled by goobermint), Higher taxes (goobermint).


So if barry is shot and pissed on, prices may subside.  Until then, enjoy the fake inflation.

Posa's picture

No. "It's  goobermint owned by banksters... same with healthcare..

Paul E. Math's picture

Such wonderful news!  Paying more for prescription drugs, rent and gas should be so good for the economy! /sarc

illuminatus's picture

 US national Debt clock      Check out the price of gold and silver ( Right side bottom)

Golly gee, yes maybe there is some inflation.


Not Goldman Sachs's picture

Let's run this economy hot for a few years. Yea, that's the ticket to make up for 2008/09. Fuck it, let's run it hot forevet o make up for any past downturns. Fuck the fed.

the grateful unemployed's picture

prez clinton plans to promote brainard OVER yellen, Sec of T and all. i think thats how its done, you dont fire the fed chief you just put the one you want in the corner office as their boss

rejected's picture

Hey ZH,,, Do you really believe this BS?

the grateful unemployed's picture

inflation is running hot, check the stpz its the short term read. it was always there, service versus energy for instance, but energy crashed because of too low interest rates for too long, now janet raised rates last dec and inflation caught the bid, pause, raise rates equals higher inflation??? do you believe this

Aubiekong's picture

obama doubled our national debt in 8 years and that is going to be a bitch for the value of our dollar...

Kidbuck's picture

Obama couldn't have spent a penny without Ryan's approval.

Will Trump be able to spend a penny less if he can't get Ryan's approval?

the grateful unemployed's picture

and if you take the 7 mos in the chart and average them you get 1.15 for energy instead of -2.9 YOY. a few of these are backloaded like piped gas. (guess the HY cramdown on NG prices is lifting) and or course there is disinflation in used car, they made too many of them, duh. i just spent ten minutes more looking at this than Janet Yellen does.  she probably stares and this and says inflation, good, hmmmp, wonder what Bejing is doing with their credit, if i have to buy anymore DBs derivatives, and should i get SNB to be the beard for the PPT this month? maybe i'll just buy them myself.

strangeglove's picture

Stay away from Greenburgh NY Janet, RE Taxes going up 100% for some lucky home owners (Home Bagholders)

Beware the Hyperinflation it is crashing around us!

skunzie's picture

I love government mandates.  I'm old enough to remember the good ol' soviet union and their mandates:  None of them were ever met which is why the government ultimately collapsed.  Perhaps we are traveling the same road????

the grateful unemployed's picture

news flash no rate change in december, they raise the inflation target to 3%

moonmac's picture

To keep my cost of living down I buy vintage high quality products at Goodwill for $2.99 each which have more value than an entire aisle at the Dollar Store.