Inflation in September was a little hotter than expected but in line with readings from previous months. The Labor Department’s Consumer Price Index (CPI) rose 0.2% last month, making the inflation rate for the last 12 months 2.4%.
Food and housing accounted for 75% of the increase. Food prices increased by 0.4% with food consumed at home – mostly a reflection of grocery prices – jumping 0.4% after being flat in August and rising just 0.1% in July.
Food consumed away from home– mostly a reflection of restaurant menu prices – rose by 0.3%. Grocery prices are up 1.3% over the last 12 months while restaurant prices are nearly 4% higher than in September 2023.
Most grocery categories cost more
At the supermarket, there was a pickup in inflation as nearly every food category cost more. Meat, fish, poultry and eggs registered the largest one-month increase, rising 0.8%. Dairy and dairy-related products rose 0.5%.
The cost of fruits and vegetables declined by 0.2% while the cost of non-alcoholic beverages fell by 0.7%.
The cost of shelter, which includes both rent and home ownership costs – slowed in September, rising just 0.2% over August’s 0.5% and July’s 0.4% increase.
The cost of auto insurance continued to go up last month, rising by 1.2% and is up by 16% over the last 12 months, one of the largest pain points for consumers.
Used vehicle prices rose 0.3% after declining over the previous three months. New car prices rose by 0.2%.
The cost of medical care rose by 0.7%, led by higher costs for doctors’ fees.