The cost of food and shelter fueled inflation in September as inflation was higher than analysts’ predictions, the U.S. Bureau of Labor Statistics reported Thursday.
In September, the Consumer Price Index for All Urban Consumers (CPI-U) increased a seasonally-adjusted 0.2% for the third straight month. Over the last 12 months, the all-items index increased 2.4% before seasonal adjustment. Both measures disappointed expectations of 0.1% and 2.3%, respectively.
The so-called “core” index (excluding food and gasoline) rose 0.3% in September (matching August’s month-to-month rise) and 3.3% from year-ago.
The cost of shelter rose 0.2% in September. The shelter index has increased 4.9% over the last year, accounting for more than 65% of the total 12-month increase in the core index.
The cost of food rose 0.4% for the month and 2.3% from 12 months earlier. Five of the six major grocery store food group indexes increased over the month, led by the cost of eggs (+8.4%).
Combined, the food and shelter indexes accounted for more than 75% of September’s all-items increase.
Other indexes with notable increases over the last year include:
- Motor Vehicle Insurance: +16.3%.
- Transportation Services: +8.5%.
- Motor Vehicle Maintenance and Repair: +4.9%
- Electricity +3.9%
- Meats, Poultry, Fish and Eggs: +3.9%
- Hospital Services: +4.5%.
- Electricity: +3.7%
On the bright side, the energy index was down 2.4% from August and 6.8% from September 2023.
For an in-depth comparison of the economies of the Biden and Trump administrations, click here.
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