CONSUMER PRICE INDEX – OCTOBER 2021

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November 10, 2021 - The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9 percent in October on a seasonally adjusted basis after rising 0.4 percent in September, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 6.2 percent before seasonal adjustment.

The monthly all items seasonally adjusted increase was broad-based, with increases in the indexes for energy, shelter, food, used cars and trucks, and new vehicles among the larger contributors. The energy index rose 4.8 percent over the month, as the gasoline index increased 6.1 percent and the other major energy component indexes also rose. The food index increased 0.9 percent as the index for food at home rose 1.0 percent.

The index for all items less food and energy rose 0.6 percent in October after increasing 0.2 percent in September. Most component indexes increased over the month. Along with shelter, used cars and trucks, and new vehicles, the indexes for medical care, for household furnishing and operations, and for recreation all increased in October. The indexes for airline fares and for alcoholic beverages were among the few to decline over the month.

The all items index rose 6.2 percent for the 12 months ending October, the large st 12-month increase since the period ending November 1990. The index for all items less food and energy rose 4.6 percent over the last 12 months, the largest 12-month increase since the period ending August 1991. The energy index rose 30.0 percent over the last 12 months, and the food index increased 5.3 percent.





Food

The food index increased 0.9 percent in October, the same increase as in September. The food at home index increased 1.0 percent over the month as all six major grocery store food group indexes continued to rise. The index for meats, poultry, fish, and eggs continued to rise sharply, increasing 1.7 percent following a 2.2-percent increase in September. The index for beef rose 3.1 percent over the month.

The index for other food at home rose 1.2 percent over the month, its largest monthly increase since April 2020, near the onset of the pandemic. The index for cereals and bakery products rose 1.0 percent in October following a 1.1-percent increase the prior month. The index for nonalcoholic beverages rose 0.8 percent in October, the index for dairy and related products rose 0.2 percent, and the index for fruits and vegetables advanced 0.1 percent.

The food away from home index rose 0.8 percent in October after increasing 0.5 percent in September. The index for full service meals rose 0.9 percent and the index for limited service meals increased 0.8 percent over the month.

The food at home index rose 5.4 percent over the past 12 months as all of the six major grocery store food group indexes increased over the period. The index for meats, poultry, fish, and eggs increased 11.9 percent, with the index for beef rising 20.1 percent and the index for pork rising 14.1 percent, its largest 12-month increase since the period ending December 1990. The other major grocery store food group indexes also increased over the last 12 months with increases ranging from 1.8 percent (dairy and related products) to 4.5 percent (nonalcoholic beverages).

The index for food away from home rose 5.3 percent over the last year. The index for limited service meals rose 7.1 percent over the last 12 months, and the index for full service meals rose 5.9 percent, both the largest 12-month increases in the history of the respective series. The index for food at employee sites and schools declined sharply over the past year, falling 45.4 percent.

Energy

The energy index rose 4.8 percent in October after rising 1.3 percent in September. The gasoline index rose 6.1 percent in October, its fifth consecutive monthly increase. (Before seasonal adjustment, gasoline prices rose 3.7 percent in October.) The index for natural gas rose 6.6 percent over the month, its largest monthly increase since March 2014. The electricity index increased 1.8 percent in October, its largest 1-month increase since May 2014, while the fuel oil index also rose sharply, increasing 12.3 percent.

The energy index rose 30.0 percent over the past 12 months, its largest 12-month increase since the period ending September 2005. All the major energy component indexes increased sharply over the last 12 months. The gasoline index rose 49.6 percent over the last year, and is now at its highest level since September 2014. The fuel oil index increased sharply over the year, rising 59.1 percent. The index for natural gas rose 28.1 percent over the last 12 months, and the electricity index rose 6.5 percent.

All items less food and energy

The index for all items less food and energy rose 0.6 percent in October as most major component indexes increased. The shelter index increased 0.5 percent over the month, as the indexes for rent and owners’ equivalent rent both rose 0.4 percent and the index for lodging away from home increased 1.4 percent. Major vehicle indexes also rose in October. The index for used cars and trucks rose 2.5 percent after declining in August and September. The index for new vehicles rose 1.4 percent in October, its seventh consecutive monthly increase.

The medical care index increased in October, rising 0.5 percent, its largest monthly increase since May 2020. The index for hospital services rose 0.5 percent, and the index for prescription drugs advanced 0.6 percent; the index for physicians’ services was unchanged. The household furnishings and operations index rose 0.8 percent, and the recreation index increased 0.7 percent. Also rising in October were the indexes for personal care (0.6 percent), tobacco (1.9 percent), education (0.2 percent), and communication (0.1 percent).

The motor vehicle insurance index and the apparel index were both unchanged in October. The index for airline fares was one of the few to decline, falling 0.7 percent; the index for alcoholic beverages decreased 0.2 percent.

The index for all items less food and energy rose 4.6 percent over the past 12 months. Component indexes rising more include used cars and trucks (26.4 percent) and new vehicles (9.8 percent, the largest 12-month increase since the period ending May 1975). Indexes rising less than 4.6 percent include shelter (3.5 percent) and medical care (1.3 percent). Few major component indexes declined over the past year; one exception is airline fares (-4.6 percent).

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 6.2 percent over the last 12 months to an index level of 276.589 (1982-84=100). For the month, the index increased 0.8 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 6.9 percent over the last 12 months to an index level of 271.552 (1982-84=100). For the month, the index rose 0.9 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 6.1 percent over the last 12 months. For the month, the index increased 0.8 percent on a not seasonally adjusted basis. Please note that the indexes for the past 10 to 12 months are subject to revision.
Source: BLS