Consumer Price Index - September 2023

The U.S. Bureau of Labor Statistics has reported that the Consumer Price Index for All Urban Consumers (CPI-U) rose by 0.4 percent in September, following a 0.6 percent increase in August. Over the past year, the all items index increased by 3.7 percent before seasonal adjustment.

Shelter and Gasoline Drive Monthly Increase

The index for shelter played a significant role in the monthly increase in all items, contributing to over half of the rise. An increase in the gasoline index also had a major impact on the monthly increase in all items. While energy component indexes showed mixed results in September, the overall energy index rose by 1.5 percent. The food index saw a 0.2 percent increase in September, consistent with the previous two months, with the food at home index rising by 0.1 percent and the food away from home index by 0.4 percent.

Core Inflation Remains Stable

The index for all items less food and energy increased by 0.3 percent in September, mirroring August's increase. Notable increases in this category included rent, owners' equivalent rent, lodging away from home, motor vehicle insurance, recreation, personal care, and new vehicles. Conversely, the indexes for used cars and trucks, as well as apparel, experienced declines in September.

Steady Annual Inflation

Over the 12 months ending in September, the all items index increased by 3.7 percent, identical to the increase recorded for the 12 months ending in August. The all items less food and energy index rose by 4.1 percent over the same period. The energy index decreased by 0.5 percent for the 12 months ending in September, while the food index increased by 3.7 percent over the past year.

A Look at the Breakdown

• Food: The food index increased by 0.2 percent in September, with the food at home index rising by 0.1 percent and the food away from home index by 0.4 percent.
• Energy: The energy index increased by 1.5 percent in September, mainly driven by a 2.1 percent increase in the gasoline index. The electricity index also rose by 1.3 percent in September, while the natural gas index fell by 1.9 percent over the month.
• Core Inflation: The index for all items less food and energy rose by 0.3 percent in September. Shelter had a notable increase of 0.6 percent, with rent and owners' equivalent rent also rising. Other categories with increases included motor vehicle insurance, recreation, personal care, and new vehicles. The medical care index remained stable, while used cars and trucks, as well as apparel, saw declines.

Annual Outlook

For the 12 months ending in September, the all items index increased by 3.7 percent. The all items less food and energy index rose by 4.1 percent, the energy index decreased by 0.5 percent, and the food index increased by 3.7 percent.

City Average and Not Seasonally Adjusted Data

The Consumer Price Index for All Urban Consumers (CPI-U) increased by 3.7 percent over the past year, reaching an index level of 307.789 (1982-84=100). For the month, the index increased by 0.2 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased by 3.6 percent over the past year, reaching an index level of 302.257 (1982-84=100). For the month, the index increased by 0.2 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased by 3.7 percent over the past year. For the month, the index increased by 0.2 percent on a not seasonally adjusted basis.

Upcoming Release

The Consumer Price Index for October 2023 is scheduled to be released on Tuesday, November 14, 2023, at 8:30 a.m. (ET). Please note that the indexes for the past 10 to 12 months are subject to revision.

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