US Consumer Inflation Highest since 1990 in October CPI +6.2% y/y

US CPI in October shows inflation remains persistently high as Central Bankers keep trying to reassure us that soaring inflation is transitory. Annual CPI was up +6.2% vs +5.8% expected with core CPI +4.6% vs +4.3% y/y expected

US CPI in October shows inflation remains persistently high as Central Bankers keep trying to reassure us that soaring inflation is transitory. Annual CPI was up +6.2% vs +5.8% expected with core CPI +4.6% vs +4.3% y/y expected

Inflation

 

US CPI October 2021

CPI in September was up 0.9% month-over-month (consensus +0.6%) following a 0.2% increase in September

 United States Consumer Price Index (CPI)

CPI in October year-over-year figures was +6.2% y/y versus 5.4% in September

 United States Inflation Rate

Highlights

  • The annual inflation rate in the US surged to 6.2% in October of 2021, the highest since November of 1990 and above forecasts of 5.8%.
  • Upward pressure  broad-based, with energy costs recording the biggest gain (30% vs 24.8% in September), namely gasoline (49.6%).
  • Inflation also increased for shelter (3.5% vs 3.2%); food (5.3% vs 4.6%, the highest since January of 2009), namely food at home (5.4% vs 4.5%); new vehicles (9.8% vs 8.7%); used cars and trucks (26.4% percent vs 24.4%); transportation services (4.5% vs 4.4%); apparel (4.3% vs 3.4%); and medical care services (1.7% vs 0.9%).
  • The monthly rate increased to 0.9% from 0.4% in September, also higher than forecasts of 0.6%, boosted by higher cost of energy, shelter, food, used cars and trucks, and new vehicles.

Food

United States Food Inflation

Housing

United States CPI Housing

Transportation

United States CPI Transportation

US Core CPI October 2021

United States Core Consumer Prices

  • October core CPI, which excludes food and energy, was up Core m/m +0.6% vs +0.4% exp Prior core m/m +0.2%
  • Year-over-year core CPI +4.6% vs +4.3% y/y expected Prior ex food and energy +4.0%
  • It was the largest annual increase in core consumer prices since August 1991

 United States Core Inflation Rate

The effects of the coronavirus pandemic are weighing on prices since in last year many businesses closed and lockdowns were imposed, denting economic activity.  A jump in commodities and material costs, coupled with supply constraints, are pushing producer prices up and some companies are passing those costs to clients

US Real Earnings October 2021

  • Real weekly earnings -0.9% vs +0.8% prior

 

“I’m making more money…But I don’t see it because I’m paying more money for stuff now.” Low-wage workers are getting sharp raises. Inflation is eating them up. via Greg Ip WSJ

 Source: BLS

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