On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.3 percent in October, the U.S. Bureau of Labor Statistics reported today.
The index has decreased 0.2 percent over the last 12 months on a not seasonally adjusted basis.
Subscribe to All American Investor via Email
The seasonally adjusted all items increase largely reflected advances in the indexes for energy and for new and used motor vehicles. The energy index rose for the fifth time in the last six months, advancing 1.5 percent as the indexes for gasoline, fuel oil, natural gas, and electricity all increased. The index for all items less food and energy rose 0.2 percent in October, the same increase as in September. The indexes for used cars and trucks and for new vehicles both rose sharply and together they accounted for over 90 percent of the increase in the index for all items less food and energy. The indexes for airline fares and medical care also increased, while the shelter index was unchanged and the indexes for apparel and recreation declined. The food index also increased in October, rising 0.1 percent after declining in two of the previous three months. The index for food away from home increased slightly, while the food at home index was unchanged. Within the food at home group, the index for dairy and related products rose significantly, while the fruits and vegetables index declined for the fourth straight month.
Consumer Price Index Data for October 2009
Food
The food index rose 0.1 percent in October after declining 0.1 percent in September. The index for food away from home increased 0.1 percent while the food at home index was unchanged. Within the food at home group, the index for dairy and related products rose 1.0 percent in October after a 0.5 percent increase in September, and the index for other food at home advanced 0.3 percent. These increases were offset by a 0.7 percent decline in the fruits and vegetables index and 0.2 percent decreases in the indexes for meats, poultry, fish, and eggs and for nonalcoholic beverages. The index for cereals and bakery products was unchanged in October. Over the past 12 months, the food index has declined 0.6 percent with the food at home index down 2.8 percent.
Energy
The energy index rose 1.5 percent in October after increasing 0.6 percent in September. The index for energy commodities rose 1.9 percent, with the gasoline index increasing 1.6 percent. (Before seasonal adjustment, gasoline prices fell 0.8 percent in October.) The index for fuel oil rose 6.3 percent. The index for energy services, which increased 0.1 percent in September, rose 0.9 percent in October. The electricity index increased 0.6 percent while the index for natural gas rose 1.9 percent in October after declining 1.7 percent in September. Over the past 12 months, the energy index has fallen 14.0 percent with the gasoline index declining 17.9 percent.
All items less food and energy
The index for all items less food and energy rose 0.2 percent in October, the same increase as in September. Most of the advance was due to increases in transportation indexes. The new vehicles index rose 1.6 percent and the index for used cars and trucks rose 3.4 percent, its third consecutive substantial increase. The index for airline fares rose for the fourth straight month, increasing 1.7 percent in October. Outside of the transportation group, the changes within all items less food and energy were largely modest. The medical care index rose 0.2 percent in October after increasing 0.4 percent in September. The shelter index was unchanged in October, as it was in September. The rent index decreased 0.1 percent, the index for owners’ equivalent rent was unchanged, and the index for lodging away from home rose 0.4 percent. Posting declines in October were the indexes for recreation and apparel, which both fell 0.4 percent. For the past 12 months, the index for all items less food and energy has risen 1.7 percent. Kindle: Amazon's 6" 
Wireless Reading Device Original content Bob DeMarco, All American Investor
