The Consumer Price Index for September 2010 increased 0.1% from last month. For the year, the Consumer Price Index for all Urban Consumers (CPI-U) has risen 1.1%. The increase this month was all gas and food. Core CPI, or all items less food and energy, was unchanged from last month, where it too flatlined to +0.0%. This report is from the BLS website. These numbers are for CPI-U, whereas the metric used to calculated social security and other government payments is CPI-W. See below for how seniors will get no cost of living adjustment and why.
Inflation is clearly not here, we have a record on core CPI-U, it's lowest increase since 1961. Core CPI, or minus food and energy is an inflation gauge, trying to remove the (cough) volatile energy and food, but believe me, eating, staying warm and getting around do count in real life for real life price increases!
Over the last 12 months, the index for all items less food and energy rose 0.8 percent, the lowest 12-month increase since March 1961, with the shelter component down 0.4 percent. The food index rose 1.4 percent, with both the food at home index and food away from home index rising the same 1.4 percent. The energy index rose 3.8 percent over the last year, with gasoline up 5.1 percent.
Below are gas prices for the last year.
Of the categories that increased, in food it's baked goods, sweets and meat, in energy, which increased 0.7%, it was gas and medical care increased 0.8%. Natural gas dropped -2.3%, which is great news with the onset of winter.
CPI-W for the month, unadjusted was 214.306. As previously analyzed, there will be no cost of living adjustment for social security and other government transfer payments. The updated graph showing a negative COLA adjustment is below. The government never reduces payments, so a negative number means there is no increase in payments. To read why there is no increase in payments for seniors, click here.
Last month's CPI report overview is here.