Midwest prices rise 3.2 percent

KANSAS CITY – Prices in the Midwest Region, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased 0.1 percent in September, the U.S. Bureau of Labor Statistics reported today.

 

The all items less food and energy index advanced 0.1 percent in September, primarily due to higher costs for owners’ equivalent rent of residences. The food index also contributed to the over-the-month increase, advancing 0.3%. The energy index declined 1.1 percent over the month, almost entirely offsetting increases in the other categories.

 

Over the last 12 months, the CPI-U advanced 3.2 percent. The index for all items less food and energy increased 4.2 percent over the year, while food prices rose 3.4 percent. Somewhat offsetting the increase was a decline in energy prices by 6.0 percent, largely the result of falling natural gas service prices over the year. (See chart 1.)

 

 

Food

Food prices increased 0.3 percent for the month of September. Prices for food away from home increased 0.4 percent, and prices for food at home rose 0.2 percent for the same period. Within the food at home category, the indexes for nonalcoholic beverages and beverage materials (+1.8 percent) and cereals and bakery products (+0.5 percent) contributed the most to the over-the-month increase. A decline in the index for other food at home (-0.4 percent) moderated rising prices for this category in September.

 

Over the year, food prices increased 3.4 percent. Prices for food away from home (restaurant, cafeteria, and vending purchases) rose 4.7 percent, and prices for food at home (grocery store prices) increased 2.6 percent in the same period. Within the food at home category, the indexes for other food at home (+4.7 percent) and cereals and bakery products (+5.1 percent) contributed the most to the over-the-year increase.

 

Energy

The energy index declined 1.1 percent over the month. The decrease was largely due to falling prices for natural gas service (-5.8 percent), but a decline in prices paid for gasoline (-1.0 percent) also contributed. Rising prices for electricity (+0.2 percent) and fuel oil slightly offset energy price decreases in September.

 

From September 2022 to September 2023, energy prices fell 6.0 percent, almost entirely driven by lower prices for natural gas service (-34.5 percent). Partially offsetting the over-the-year decline were increasing prices for electricity (+3.7 percent).

 

All items less food and energy

The index for all items less food and energy rose 0.1 percent in September, with the increase almost entirely due to higher prices for shelter (+0.5 percent) and apparel (+1.6 percent). Lower prices for used cars and trucks (-5.6 percent), medical care (-0.3 percent), and motor vehicle parts and equipment almost entirely offset the one-month increases from other components.

 

Over the year, the index for all items less food and energy increased 4.2 percent. Components contributing to the increase included shelter (+7.4 percent) and recreation (+4.2 percent). Partly offsetting the increase were falling prices for used cars and trucks, which declined by 7.7 percent over the year.