EmailStory Stocks®
Archive
Last Update: 19-Oct-11 09:25 ET
Consumer Prices Rise on Higher Energy Costs
The CPI increased 0.3% in September, exactly what the Briefing.com consensus expected. The September increase was slower than the 0.4% growth in August and was the smallest increase since June when CPI declined 0.2%.
Like the September PPI, the inflation level was boosted by statistical rather than real price increases.
Even though the average oil and gasoline price in September was substantially lower than August levels, the Bureau of Labor Statistics does not use monthly averages to calculate inflation. Instead, it surveys consumers for a week during the month. It just so happened that the time period used to compare inflation between September and August was during a mini surge in oil prices.
Thus, instead of energy prices falling in September, the CPI showed a 2.0% increase in costs.
These gains will be completely offset next month when the CPI compares the relatively high September energy level with a much lower October number.
Food prices increased 0.4% in September as all grocery store categories saw price increases for the month.
Outside of the food and energy sector, core CPI increased 0.1%. That was the smallest increase since March 2011 and below the consensus expectation of a 0.2% increase.
Like the September PPI, the inflation level was boosted by statistical rather than real price increases.
Even though the average oil and gasoline price in September was substantially lower than August levels, the Bureau of Labor Statistics does not use monthly averages to calculate inflation. Instead, it surveys consumers for a week during the month. It just so happened that the time period used to compare inflation between September and August was during a mini surge in oil prices.
Thus, instead of energy prices falling in September, the CPI showed a 2.0% increase in costs.
These gains will be completely offset next month when the CPI compares the relatively high September energy level with a much lower October number.
Food prices increased 0.4% in September as all grocery store categories saw price increases for the month.
Outside of the food and energy sector, core CPI increased 0.1%. That was the smallest increase since March 2011 and below the consensus expectation of a 0.2% increase.
