Consumer prices fall by largest amount in 10 months; Core Inflation Edges Up
The index for energy, which advanced at annual rates of 21.8% 23.8%t in the first two quarters, declined at a 15.6% rate in the third quarter of 2006. Thus far this year, energy costs have risen at an 8.3% SAAR after increasing 17.1% in all of 2005.
The food index rose at a 2.6% SAAR in the first nine months of 2006. The index for grocery store food prices increased at a 2.2% rate.
The core CPI - excluding food and energy - advanced at a 2.7 percent SAAR in the third quarter, following increases at rates of 2.8 and 3.6 percent in the first two quarters of 2006. The advance at a 3.0 percent SAAR for the first nine months of 2006 compares with a 2.2 percent rise in all of 2005. Almost 80 percent of the overall acceleration was accounted for by the larger increase in the index for shelter. Shelter costs, which rose 2.6 percent in all of 2005, have risen at a 4.1 percent annual rate in the first nine months of 2006. An upturn in the index for apparel accounted for about 18 percent of the acceleration thus far in 2006. The annual rates for selected groups for the last seven and three-quarter years are shown below.