Inflation has been slowing down as consumers’ purchasing power is growing stronger, according to a Bureau of Labor Statistics press release.
The document defines the Consumer Price Index (CPI) as a tool used to track the price changes of goods and services in the U.S., focusing on two main population groups: urban consumers, urban wage earners and clerical workers. The CPI includes spending patterns of professionals, the self-employed, the poor, the unemployed and retired people, as well as urban wage earners and clerical workers. It is not included in the CPI for those living in rural nonmetropolitan areas, farming families, the Armed Forces or institutions like prisons and mental hospitals. The CPI is measured using two indexes: the Consumer Price Index for All Urban Consumers (CPI-U) and the Chained Consumer Price Index for All Urban Consumers (C-CPI-U). The CPI-W population represents approximately 30% of the total U.S. population. Prices are collected monthly in 75 urban areas across the country, from 6,000 housing units and 22,000 retail establishments.
The Consumer Price Index for All Urban Consumers (CPI-U) remained unchanged in October, after increasing 0.4% in September. The all items index increased by 3.2% over the last 12 months. The shelter index continued to rise, while the energy index fell by 2.5% due to a 5.0% decline in gasoline. All items less food and energy index rose by 0.2%. Indexes that increased in October include rent, owners’ equivalent rent, motor vehicle insurance, medical care, recreation and personal care. Indexes for lodging away from home, used cars and trucks, communication, and airline fares decreased. The all items index rose 3.2% for the 12 months ending October, its smallest 12-month change since September 2021.
According to the document, the food index increased by 0.3% in October, with four of the six major grocery store food group indexes increasing. The index for meats, poultry, fish and eggs rose by 0.7%, while the other food at home index and dairy and related products index also increased. The index for cereals and bakery products also rose by 0.2%. Nonalcoholic beverages decreased by 0.1%, while fruits and vegetables remained unchanged. The food away from home index rose by 0.4% over the last year, while the index for limited-service meals and full-service meals rose by 4.3%.
