The Bureau of Labor Statistics’ Consumer Price Index report increased more than expected, across the board, in October, underscoring that inflation is both persistent and broadening.
Headline CPI rose 0.9%, compared with estimates for a rise of 0.6%. This follows a 0.4% rise in September.
After removing volatile food and energy prices, core CPI increased 0.6% in October compared to estimates for 0.4%. This represents some acceleration from September’s rise of 0.2%.
On a yearly basis, consumer prices are up 6.2% while core consumer prices are up 4.6%.
Food
Food prices continue to rise, with a 0.9% increase in October - which is the second consecutive rise at that pace. Food at home costs rose 1.0%, driven largely by a 1.7% rise in the meats, poultry, fish and eggs group. That group has risen 11.9% over the past year.
Dairy product prices rose 0.2% last month, for an increase of 1.8% over the past year. Fruit and vegetable prices rose only 0.1% last month and are up 3% over the last 12 months.
Energy
Energy prices picked up the pace in October, rising a massive 4.8% after an increase of 1.3% in September. Over the past four months, monthly rises have been between 1.3% and 2.0%, so October’s much sharper price increase is a little unsettling. Over the past 12-months, energy prices have increased 30.0%, but this includes periods where demand for transportation fuels was very low due to the pandemic.
Gasoline prices increased 6.1% in October, far steeper than the 1.2% increase in September, with prices now up 49.6% on the year. Fuel oil was also a big driver for the energy index, with a 12.3% increase, pushing prices up 59.1% over the last 12 months.
Electricity costs meanwhile have been more stable, rising 1.8% last month and 6.5% over the last year.
Core
Away from the more volatile food and energy prices, consumers are still faced with widespread price increases.
Commodity prices rose 1.0% on the month, up 8.4% for the year. Vehicle prices remain a key element of the increase here, new vehicles rose 1.4% and used cars and trucks rose 2.5%, with the pair up 9.8% and 26.4%. respectively, over the last 12 months.
Airline fares and alcoholic beverages were of the few indices to decline this month, falling 0.7% and 0.2% respectively.
