Consumer Prices Rise in September After Several Months of Stability

By Manuel Gutierrez, Consulting Economist to NKBA

Monthly gain of 0.4 percent follows flat July and 0.1 percent increase in August, with Housing 0.7 percent higher.

• Overall prices are 8.2 percent higher than a year ago, modestly better than previous YOY comparisons for past six months.
•  Core inflation, the level after food and energy components are stripped out, is up 0.6 percent for the month and 6.7 percent for the year, the highest since August 1982.
•  Housing costs are up 8 percent from a year ago, tracking just below the 8.2 overall inflation rate.
•  Within Housing, Household Energy is up 21 percent, Flooring by 15 percent, Furniture 10 percent and Windows 7 percent over the previous year.
•  Inflation is evident across virtually all products and services, led by Transportation Service – including airlines – with prices up 1.9 percent for the month and 21 percent since last September.
•  Gasoline prices retreated by 5 percent in September to an average of $3.88 a gallon but remain 19 percent higher than a year ago.
•  Food consumed at home rose a significant 0.8 percent in September over the previous month, twice the overall monthly increase. Annually, it is 11 percent higher.