October 2016 Consumer Price Index

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The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in October on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index rose 1.6 percent before seasonal adjustment.

As in September, increases in the shelter and gasoline indexes were the main causes of the rise in the all items index. The gasoline index rose 7.0 percent in October and accounted for more than half of the increase in the all items index. The shelter index increased 0.4 percent for the second straight month.

The energy index increased 3.5 percent, its largest advance since February 2013. The indexes for fuel oil and gasoline were up 5.9 percent and 7.0 percent, respectively, while the indexes for electricity and natural gas saw relatively smaller increases of 0.4 percent and 0.9 percent. In contrast, the index for food was unchanged for the fourth consecutive month, as the food at home index continued to decline.

The index for all items less food and energy rose 0.1 percent for the second straight month. Along with the shelter index, the indexes for apparel, new vehicles, and motor vehicle insurance all increased in October, as did the indexes for education, household furnishings and operations, alcoholic beverages, and tobacco. The indexes for personal care, communication, used cars and trucks, recreation, and airfare all declined. The medical care index was flat over the month.

The all items index rose 1.6 percent for the 12 months ending October, its largest 12-month increase since October 2014. The index for all items less food and energy rose 2.1 percent for the 12 months ending October. The food index declined 0.4 percent over the span, while the energy index rose 0.1 percent.

Seasonally adjusted changes from preceding month Un- adjusted 12-mos. Apr. May June July Aug. Sep. Oct. ended 2016 2016 2016 2016 2016 2016 2016 Oct. 2016

Food

The food index was unchanged in October, as it was the previous 3 months. The index for food away from home increased 0.1 percent, while the food at home index fell 0.2 percent, its sixth consecutive monthly decline. Major grocery store food group indexes were mixed, with three declines, two increases, and one category unchanged. The index for nonalcoholic beverages fell 0.4 percent, its fifth decrease in the last 6 months. The index for meats, poultry, fish, and eggs declined for the fourteenth consecutive month, falling 0.7 percent. The index for other food at home fell 0.1 percent, after increasing 0.1 percent in September. The index for cereals and bakery products was unchanged in October. The fruits and vegetables index rose 0.2 percent, and the index for dairy and related products increased 0.3 percent.

Over the last 12 months, the food at home index has declined 2.3 percent, the largest 12-month decline since December 2009. As in September, all six major grocery store food group indexes declined over the last year. The index for food away from home rose 2.4 percent over the last 12 months.

Energy

The energy index increased 3.5 percent in October after rising 2.9 percent in September. It was the largest 1-month increase in the energy index since February 2013, as all major energy component indexes increased. The gasoline index rose 7.0 percent after a 5.8-percent increase in September. (Before seasonal adjustment, gasoline prices increased 1.8 percent in October.) The fuel oil index also increased in October, rising 5.9 percent after increasing 2.4 percent in September. The electricity index rose 0.4 percent in October, its fourth straight increase. The index for natural gas also continued to rise, increasing 0.9 percent in October.

The energy index increased 0.1 percent over the last 12 months; though slight, this is the first 12-month increase since August 2014. The gasoline index has declined 0.9 percent over the last year, the smallest 12-month change since July 2014. However, the index for natural gas has risen 4.8 percent over the past year, and the electricity index has advanced slightly, increasing 0.4 percent.

All items less food and energy

The index for all items less food and energy increased 0.1 percent for the second consecutive month in October. The shelter index increased 0.4 percent in October, reflecting a 0.4-percent increase in the rent index and a 0.3-percent advance in the index for owners' equivalent rent. The index for motor vehicle insurance has risen for 12 consecutive months, increasing 0.2 percent in October. The index for tobacco also increased, up 0.3 percent, while the alcoholic beverages index rose 0.4 percent. The apparel index rose 0.3 percent, the index for household furnishings and operations increased 0.1 percent, and the new vehicles index increased 0.2 percent. The education index advanced 0.5 percent over the month.

In contrast to these increases, several indexes declined in October. The recreation index was down 0.1 percent for the fourth consecutive month. The personal care index declined 0.1 percent in October, its first decline since July 2015. The index for used cars and trucks fell 0.1 percent, its eighth straight monthly decline. The index for airline fares fell 2.2 percent, and the communication index was down 0.5 percent.

The index for medical care was unchanged. The index for prescription drugs rose 0.2 percent in October after increasing 0.8 percent in September and 1.7 percent in August. The index for hospital services was up 0.2 percent in October, while the index for physician services was down 0.1 percent.

The index for all items less food and energy increased 2.1 percent over the past 12 months (it has remained in the narrow range of 2.1 percent to 2.3 percent since December 2015). The shelter index has risen 3.5 percent over the last 12 months, and the medical care index has increased 4.3 percent. The index for used cars and trucks has declined 4.1 percent over the year. The tobacco index rose 3.5 percent over the last 12 months, while the index for alcoholic beverages rose 1.3 percent.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.6 percent over the last 12 months to an index level of 241.729 (1982-84=100). For the month, the index increased 0.1 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 1.4 percent over the last 12 months to an index level of 235.732 (1982-84=100). For the month, the index increased 0.1 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 1.5 percent over the last 12 months. For the month, the index rose 0.1 percent on a not seasonally adjusted basis. Please note that the indexes for the past 10 to 12 months are subject to revision.

Consumer Price Index Geographic Revision for 2018

In January 2018, BLS will introduce a new geographic area sample for the Consumer Price Index (CPI). The 2018 revision utilizes the 2010 Decennial Census and incorporates an updated area sample design, changes the frequency of publication for several local area indexes, and establishes some new local area and aggregate indexes. The first indexes using the new structure will be published in February 2018. Additional information on the geographic revision is available at: www.bls.gov/cpi/georevision2018.htm.

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