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.