October 2023 Consumer Price Index

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in October on a seasonally adjusted basis, after increasing 0.4 percent in September, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.2 percent before seasonal adjustment.

The index for shelter continued to rise in October, offsetting a decline in the gasoline index and resulting in the seasonally adjusted index being unchanged over the month. The energy index fell 2.5 percent over the month as a 5.0-percent decline in the gasoline index more than offset increases in other energy component indexes. The food index increased 0.3 percent in October, after rising 0.2 percent in September. The index for food at home increased 0.3 percent over the month while the index for food away from home rose 0.4 percent.

The index for all items less food and energy rose 0.2 percent in October, after rising 0.3 percent in September. Indexes which increased in October include rent, owners' equivalent rent, motor vehicle insurance, medical care, recreation, and personal care. The indexes for lodging away from home, used cars and trucks, communication, and airline fares were among those that decreased over the month.

The all items index rose 3.2 percent for the 12 months ending October, a smaller increase than the 3.7-percent increase for the 12 months ending September. The all items less food and energy index rose 4.0 percent over the last 12 months, its smallest 12-month change since the period ending in September 2021. The energy index decreased 4.5 percent for the 12 months ending October, and the food index increased 3.3 percent over the last year.

Food

The food index rose 0.3 percent in October, after rising 0.2 percent in each of the last 3 months. The index for food at home increased 0.3 percent over the month, after rising 0.1 percent in September. Four of the six major grocery store food group indexes increased over the month. The index for meats, poultry, fish, and eggs rose 0.7 percent in October as the index for beef increased 1.2 percent and the index for pork rose 1.3 percent. The other food at home index increased 0.3 percent over the month, as did the dairy and related products index. The index for cereals and bakery products rose 0.2 percent in October, after falling 0.4 percent in September.

The index for nonalcoholic beverages decreased 0.1 percent in October, after being unchanged in September. The fruits and vegetables index was unchanged over the month, as it was in September.

The food away from home index rose 0.4 percent in October, as it did in September. The index for limited service meals increased 0.5 percent and the index for full service meals rose 0.3 percent over the month.

The food at home index rose 2.1 percent over the last 12 months. The index for cereals and bakery products rose 4.2 percent over the 12 months ending in October. The dairy and related products index decreased 0.4 percent over the year. The remaining major grocery store food group indexes posted increases ranging from 0.4 percent (meat, poultry, fish, and eggs) to 3.6 percent (other food at home).

The index for food away from home rose 5.4 percent over the last year. The index for limited service meals rose 6.2 percent over the last 12 months, and the index for full service meals rose 4.3 percent over the same period.

Energy

The energy index fell 2.5 percent in October after increasing 1.5 percent in September. The gasoline index decreased 5.0 percent in October, following a 2.1-percent increase in the previous month. (Before seasonal adjustment, gasoline prices fell 5.3 percent in October.)

The index for fuel oil fell in October, decreasing 0.8 percent. The natural gas index rose 1.2 percent over the month after falling 1.9 percent the previous month. The index for electricity rose 0.3 percent in October, after increasing 1.3 percent in September.

The energy index fell 4.5 percent over the past 12 months, as its components were mixed over the year. The gasoline index decreased 5.3 percent, the natural gas index declined 15.8 percent, and the fuel oil index fell 21.4 percent over the span. In contrast, the index for electricity rose 2.4 percent over the last year.

All items less food and energy

The index for all items less food and energy rose 0.2 percent in October, after rising 0.3 percent in September. The shelter index increased 0.3 percent in October, after rising 0.6 percent the previous month. The index for rent rose 0.5 percent in October, and the index for owners' equivalent rent increased 0.4 percent over the month. The lodging away from home index decreased 2.5 percent in October.

The shelter index was the largest factor in the monthly increase in the index for all items less food and energy. Among the other indexes that rose in October was the index for motor vehicle insurance, which increased 1.9 percent after rising 1.3 percent the preceding month. The indexes for recreation, personal care, and apparel also increased in October.

The medical care index rose 0.3 percent in October, after rising 0.2 percent in September. The index for hospital services increased 1.1 percent over the month, and the index for prescription drugs rose 0.8 percent. In contrast, the physicians' services index fell 1.0 percent in October.

The index for used cars and trucks fell 0.8 percent in October, after decreasing 2.5 percent in September. The communication index fell 0.3 percent over the month, and the index for airline fares declined 0.9 percent. The index for household furnishings and operations and the index for new vehicles both declined 0.1 percent over the month.

The index for all items less food and energy rose 4.0 percent over the past 12 months. The shelter index increased 6.7 percent over the last year, accounting for over 70 percent of the total increase in the all items less food and energy index. Other indexes with notable increases over the last year include motor vehicle insurance (+19.2 percent), recreation (+3.2 percent), personal care (+6.0 percent), and household furnishings and operations (+1.7 percent).

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 3.2 percent over the last 12 months to an index level of 307.671 (1982-84=100). For the month, the index was unchanged prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 3.1 percent over the last 12 months to an index level of 302.071 (1982-84=100). For the month, the index decreased 0.1 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 3.1 percent over the last 12 months. For the month, the index was unchanged on a not seasonally adjusted basis. Please note that the indexes for the past 10 to 12 months are subject to revision.

Changes to Health Insurance Methodology

Following recommendations from the National Academies of Science, Engineering, and Medicine's Committee on National Statistics (CNSTAT), the BLS is improving the methodology used to calculate retained earnings in the CPI health insurance index. Under the pre-October 2023 method, retained earnings were updated annually without any smoothing of the data. Under the new method, the BLS will update retained earnings every 6 months using half-year data and will calculate a 2-year moving average to smooth the changes in retained earnings. Beginning with the publication of October 2023 data, there will be a 6-month transition using annual data that has been averaged (smoothed) over 2 years. In May 2024 (publication of April 2024 data), we will begin to incorporate half-year, rather than annual, retained earnings. After this date, the retained earnings will be updated every 6 months with April and October data which will be released in May and November, respectively. This change in methodology will reduce the time lag associated with the health insurance index by 6 months.

A more detailed explanation of these changes is available in Improvements to the CPI Health Insurance Index (www.bls.gov/cpi/additional-resources/improvements-cpi-health-insurance-index.htm)