+8.2%: More Ups Than Downs in September Price Inflation As Midterm Election Approaches

(CNSNews.com) – Inflation in September was worse than predicted, rising 0.4 percent month-to-month, compared with the 0.1 percent monthly increase in August.

The year-to-year number, the “headline” number, was 8.2 percent for September, down a tenth of a point from +8.3 percent in August, but still hovering at 40-year highs.

Anticipating additional interest rate hikes by the Federal Reserve, the stock market plummeted at Thursday’s opening bell.

According to the Labor Department’s Bureau of Labor Statistics, increases in the shelter, food, and medical care indexes were the largest of many contributors to the all-items increase.

Those increases were partly offset by a 4.9-percent month-to-month decline in the gasoline index (which is up 18.2 percent year-to-year).

The energy index fell 2.1 percent over the month as the gasoline index declined, but the natural gas and electricity indexes increased. In an ominous sign for the approaching winter, fuel oil has increased 58.1 percent year over year.

The food index continued to rise, with food at home increasing 0.7 percent over the month (and 13.0 percent year to year).

Looking at various food items in the month of September:

— Fruits and vegetables, up 1.6%

— Cereals and bakery products, up 0.9%

— Meats, poultry, fish, and eggs, up 0.4%

— Nonalcoholic beverages, up 0.6%

— Dairy products, up 0.3%

Food away from home increased 0.9 percent in September, same as August.

The energy index fell 2.1 percent over the month as the gasoline index declined, but the natural gas and electricity indexes increased. In an ominous sign for the approaching winter, fuel oil has increased 58.1 percent year over year.

The index for all items less food and energy — so-called “core” inflation — rose 0.6 percent in September, as it did in August, the highest rate since 1982. The indexes for shelter, medical care, motor vehicle insurance, new vehicles, household furnishings and operations, and education were among those that increased over the month.

A few indexes declined in September, including those for used cars and trucks, apparel, and communication.

The next inflation report will be released on November 10, after the midterm elections.

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