Inflation for October went up by 0.4%

Inflation in the United States (US) has surged to 7.7 per cent for 2022, based on the latest Consumer Price Index for All Urban Consumers (CPI-U), released this week by the US Bureau of Labor Statistics.

The CPI-U for October increased by 0.4 per cent, matching the growth seen in September. With the indexes for gasoline and food also rising, the index for housing represented more than half of the monthly increase in all commodities.

The energy index grew 1.8 per cent during the course of the month, as both the gasoline and electricity indices increased while the natural gas indices fell. The food and home index grew by 0.4 per cent with the food index growing by 0.6 per cent over the course of the month.

Following a 0.6 per cent increase in September, the index for all products except food and energy increased by 0.3 per cent in October. Among those that rose over the course of the month were the indices for housing, auto insurance, recreation, new cars, and personal care.

Declines recorded in October

The used automobiles and trucks, health care, clothes, and airline prices indexes were among those that saw declines in October. The growth in the all-items index for the 12 months ending in October was 7.7 per cent, the weakest 12-month gain since the 12 months ending in January 2022.

Over the past 12 months, the index for all items minus food and energy increased by 6.3 per cent. In the 12 months ending in October, the energy index rose 17.6 per cent, and the food index rose 10.9 per cent.

However, these gains were lower than for the 12-month period ending in September.

Food

After rising by 0.8 per cent in September, the food index grew by 0.6 per cent in October. October saw the weakest monthly gain in the food at home index since December 2021, a 0.4 per cent increase. Over the course of the month, four of the six main grocery store food group indices showed growth.

After climbing 0.5 per cent in September, the index for other food consumed at home grew by 0.9 per cent in October. During the month of October, the index for meats, poultry, fish, and eggs increased by 0.6 per cent while the index for cereals and bakery goods jumped by 0.8 per cent.

Following a 0.6 per cent increase in September, the index for nonalcoholic beverages increased by 0.5 per cent in October. The index for fruits and vegetables, on the other hand, decreased 0.9 per cent month over month after rising 1.6 per cent in September. Fresh fruit index declined by 2.4 per cent, while fresh vegetable index fell by 0.5 per cent. In October, the index for dairy and associated products also fell, falling 0.1 per cent.

Energy

Following three months of decline, the energy index rose 1.8 per cent in October. Similarly, the gasoline index saw a monthly increase of 4.0 per cent after three straight months of losses. (Prices of gasoline increased by 3.1 per cent in October before seasonal adjustment.)

The electricity index grew by 0.1 per cent during the course of the month as well. The natural gas index, however, fell by 4.6 per cent in October after rising by 2.9 per cent in September.

The energy index increased 17.6 per cent in the last 12 months. Over the same time, the fuel oil index jumped by 68.5 per cent while the gasoline index increased by 17.5 per cent. Over the previous 12 months, the index for electricity jumped by 14.1 per cent and the index for natural gas increased by 20.0 per cent.

All items less food and energy

Following a 0.6 per cent gain in September, the index for all items excluding food and energy increased by 0.3 per cent in October. The shelter index increased again in October, reaching 0.8 per cent, the biggest monthly increase since August 1990.

The owners’ equivalent rent index increased by 0.6 per cent while the rent index increased by 0.7 per cent for the entire month. After falling by one per cent in September, the index for lodging away from home rose by 4.9 per cent in October.

For all categories other than food and energy, the shelter index was the main contributor to the monthly increase in the index; for the other items, there was a mix of increases and falls. The motor vehicle insurance index was one of the indexes that increased in October, climbing 1.7 per cent after increasing 1.6 per cent in September.

Following a little lesser increase of 0.1 per cent the month before, the index for recreation increased by 0.7 per cent for the entire month. In October, both the personal care and new vehicle indices grew by 0.5 per cent.

The medical care index, in contrast, decreased 0.5 per cent in October after increasing 0.8 per cent in September. Both the index for prescription pharmaceuticals and the index for hospital and related services saw monthly declines of 0.1 per cent and 0.2 per cent, respectively.

In October, the index for medical services remained constant.