U.S. consumer prices rose more than expected in September, with higher food and housing costs offsetting cheaper energy, though the annual inflation rate remained at its lowest level since early 2021.
Hikes in shelter and food prices "contributed over 75 percent of the monthly all items increase," the Labor Department’s monthly inflation report noted.
The headline inflation figure shows that U.S. consumer prices rose by 0.2% in September, the same increase as in August and July, according to the Labor Department’s October 10 report on the Consumer Price Index (CPI).
The CPI, a closely watched inflation gauge, measures what American consumers pay for a broad range of everyday items, from eggs to energy. The widely reported consensus was for a 0.1% monthly increase.
Overall, food prices for the month increased by 0.4%, following a 0.1% rise in August. Within the food category, grocery store prices also climbed by 0.4% after remaining flat, while dining-out expenses grew by 0.3% for the second consecutive month.
Meanwhile, over the past year, food prices rose by 2.3%, up from 2.1%. Grocery prices increased by 1.3%, compared to a previous rise of 0.9%, while dining-out costs climbed by 3.9%, slightly lower than the prior increase of 4%.
In other sectors, pump prices declined by 4.1% in September after falling by 0.6% in August. Year-on-year, gas prices dropped by 15.3%, compared to the previous decline of 10.3%.
The broader energy index, which includes items like gasoline, electricity, and fuel oil, dropped by 1.9% for the month after a 0.8% decline in August. Year-over-year, energy prices decreased by 6.8%, compared to the previous decline of 4%.
Excluding volatile food and energy components, the rate of core consumer prices rose by 0.3% for the second consecutive month in September, a tenth higher than expected.
Shelter or housing prices increased by 0.2% for the month, representing their 53rd consecutive monthly rise, following a 0.5% increase. Year-over-year, they increased by 4.9%.
Recent 12-month comparisons show gains of 5.2% in August, 5.1% in July, 5.2% in June, 5.4% in May, 5.5% in April, 5.7% in both March and February, 6% in January, 6.2% in December 2023, 6.5% in November 2023, 6.7% in October 2023, 7.2% in September 2023, 7.3% in August 2023, 7.7% in July 2023, 7.8% in June 2023, 8% in May 2023, 8.1% in April 2023, and 8.2% in March 2023, the latter being the most significant annual increase since June 1982.
Components of shelter include prices of items like rent for apartments, rental equivalence, lodging away from home such as hotels and motels, and housing at schools. This index accounts for about one-third of the entire CPI.
In other closely watched pricing areas:
- Clothing prices increased by 1.1% for the month after a previous rise of 0.3%, advancing 1.8% from a year ago.
- New vehicle prices climbed by 0.2% in September after remaining flat in August, but they showed a year-over-year decline of 1.3%.
- Used car and truck prices rose by 0.3% during the month, following a previous 1% decrease. Year-over-year, they fell by 5.1%.
- Airline fares increased by 1.6% compared to the previous year. For the month, they jumped by 3.2% following a 3.9% surge.
In terms of the headline annual rate, inflation rose by 2.4% for the 12 months ending in September, a tenth higher than expected. Still, this was the smallest increase since February 2021 and slightly below the 2.5% rise in the previous period.
For a broader perspective and a look further back, the inflation rate peaked at 9.1% during the 12-month period ending in June 2022. This was the fastest rate of inflation since November 1981. Additionally, until March 2023, inflation rates had remained at or above 6% for 17 consecutive months.
Meanwhile, core inflation increased by 3.3% in the year through September, also a tenth higher than expected and up from the previous 3.2%, which was the smallest increase since April 2021. This core, "all items less food and energy" index is one of the benchmark inflation rates monitored by the Federal Open Market Committee (FOMC) to guide the central bank in setting its key interest rate.
As recently as September 2022, the annual core inflation rate at 6.6% was the highest since August 1982. Many economists consider the core reading as a better predictor for future inflation.
The following table of key inflation figures is for the last seven months through September, as published by the U.S. Labor Department’s Bureau of Labor Statistics (www.bls.gov/cpi) on October 10, 2024. To index the data each month, the BLS monitors the prices of about 80,000 consumer goods and services from around the nation. All monthly and annual pricing changes are in percentages.
March 2024 to September 2024 Consumer Prices – Gains & Losses in Percent
(Seasonally Adjusted from Prior Month and Unadjusted 12-Month)
| Mar 2024 | Apr 2024 | May 2024 | June 2024 | July 2024 | Aug 2024 | Sept 2024 | 12 Month | |
| All items | 0.4 | 0.3 | 0.0 | -0.1 | 0.2 | 0.2 | 0.2 | 2.4 |
| Food | 0.1 | 0.0 | 0.1 | 0.2 | 0.2 | 0.1 | 0.4 | 2.3 |
| Food at home | 0.0 | -0.2 | 0.0 | 0.1 | 0.1 | 0.0 | 0.4 | 1.3 |
| Food away from home | 0.3 | 0.3 | 0.4 | 0.4 | 0.2 | 0.3 | 0.3 | 3.9 |
| Energy | 1.1 | 1.1 | -2.0 | -2.0 | 0.0 | -0.8 | -1.9 | -6.8 |
| Energy commodities | 1.5 | 2.7 | -3.5 | -3.7 | 0.1 | -0.6 | -4.0 | -15.3 |
| Gasoline (all types) | 1.7 | 2.8 | -3.6 | -3.8 | 0.0 | -0.6 | -4.1 | -15.3 |
| Fuel oil | -1.3 | 0.9 | -0.4 | -2.4 | 0.9 | -1.9 | -6.0 | -22.4 |
| Energy services | 0.7 | -0.7 | -0.2 | -0.1 | -0.1 | -0.9 | 0.7 | 3.4 |
| Electricity | 0.9 | -0.1 | 0.0 | -0.7 | 0.1 | -0.7 | 0.7 | 3.7 |
| Utility (piped) gas service | 0.0 | -2.9 | -0.8 | 2.4 | -0.7 | -1.9 | 0.7 | 2.0 |
| All items less food, energy | 0.4 | 0.3 | 0.2 | 0.1 | 0.2 | 0.3 | 0.3 | 3.3 |
| Commodities less food, energy | -0.2 | -0.1 | 0.0 | -0.1 | -0.3 | -0.2 | 0.2 | -1.0 |
| New vehicles | -0.2 | -0.4 | -0.5 | -0.2 | -0.2 | 0.0 | 0.2 | -1.3 |
| Used cars and trucks | -1.1 | -1.4 | 0.6 | -1.5 | -2.3 | -1.0 | 0.3 | -5.1 |
| Apparel | 0.7 | 1.2 | -0.3 | 0.1 | -0.4 | 0.3 | 1.1 | 1.8 |
| Medical care | 0.2 | 0.4 | 1.3 | 0.2 | 0.2 | -0.2 | -0.7 | 1.6 |
| Services less energy | 0.5 | 0.4 | 0.2 | 0.1 | 0.3 | 0.4 | 0.4 | 4.7 |
| Shelter | 0.4 | 0.4 | 0.4 | 0.2 | 0.4 | 0.5 | 0.2 | 4.9 |
| Transportation | 1.5 | 0.9 | -0.5 | -0.5 | 0.4 | 0.9 | 1.4 | 8.5 |
| Medical care | 0.6 | 0.4 | 0.3 | 0.2 | -0.3 | -0.1 | 0.7 | 3.6 |
The BLS releases inflation data around the middle of the month, covering consumer prices surveyed up to the previous month. The Consumer Price Index (CPI) for October and the latest annual period will be made public on November 13, 2024.
The CPI data is also used to calculate inflation rates and power this site’s U.S. Inflation Calculator, which displays the cumulative inflation and the change in the buying power of the U.S. dollar over time.
