For now, don’t blame food for last month’s increase in US retail inflation. It was higher energy prices that mainly fueled the biggest monthly increase in consumer prices since June and a sharp rise in the annual rate, the government reported Wednesday (October 18).

The Consumer Price Index for All Urban Consumers, the leading retail inflation gauge, rose 0.5 percent seasonally adjusted in September after a 0.1-percent decline in August, the US Bureau of Labor Statistics (BLS) said in Washington.

The May-June increase was also 0.5 percent.
For the 12 months through September, consumer prices were up 3.5 percent, compared to 2.7 percent for all of 1999. If the rate continues at its nine-month 2000 pace, inflation will hit 3.8 percent for the calendar year.

The seasonally adjusted energy price index rose 3.8 percent in September after a 2.9-percent decline in August, the BLS said. By contrast, however, the food price index rose only 0.2 percent last month, with grocery store food prices up only 0.1 percent after advancing 0.3 percent in August.

Excluding energy and food prices, the inflation rate from September to September was 2.6 percent, compared to 1.9 percent for all of 1999.

“We’re starting to move up,” said Jerome Watters, a Dallas-based economist for the Labor Department agency. “You can assume the Fed will still be quite worried about inflation.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

View profiles in store

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Submit

UK USA Afghanistan Åland Islands Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bonaire, Sint Eustatius and Saba Bosnia and Herzegovina Botswana Bouvet Island Brazil British Indian Ocean Territory Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos Islands Colombia Comoros Congo Democratic Republic of the Congo Cook Islands Costa Rica Côte d"Ivoire Croatia Cuba Curaçao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Holy See Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati North Korea South Korea Kuwait Kyrgyzstan Lao Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macedonia, The Former Yugoslav Republic of Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar Namibia Nauru Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island Northern Mariana Islands Norway Oman Pakistan Palau Palestinian Territory Panama Papua New Guinea Paraguay Peru Philippines Pitcairn Poland Portugal Puerto Rico Qatar Réunion Romania Russian Federation Rwanda Saint Helena, Ascension and Tristan da Cunha Saint Kitts and Nevis Saint Lucia Saint Pierre and Miquelon Saint Vincent and The Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and The South Sandwich Islands Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syrian Arab Republic Taiwan Tajikistan Tanzania Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu Uganda Ukraine United Arab Emirates US Minor Outlying Islands Uruguay Uzbekistan Vanuatu Venezuela Vietnam British Virgin Islands US Virgin Islands Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe Kosovo

Industry * Academia & Education Aerospace, Defense & Security Agriculture Asset Management Automotive Banking & Payments Chemicals Construction Consumer Foodservice Government, trade bodies and NGOs Health & Fitness Hospitals & Healthcare HR, Staffing & Recruitment Insurance Investment Banking Legal Services Management Consulting Marketing & Advertising Media & Publishing Medical Devices Mining Oil & Gas Packaging Pharmaceuticals Power & Utilities Private Equity Real Estate Retail Sport Technology Telecom Transportation & Logistics Travel, Tourism & Hospitality Venture Capital

Tick here to opt out of curated industry news, reports, and event updates from Just Food.

Submit and download

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

But despite the rising rates, Watters said, inflation remains moderate in the 3.5-3.8 percent annualized range when compared to historical data. Since the late 1970s, the U.S. inflation rate has leaped as high as 12 to 14.8 percent during a few 12-month spans, but more typically has ranged between 4 and 6 percent, he said.

“Below 4 percent and it’s definitely a number we can live with,” Watters said. “Still, it is higher than it has been in the past few years.”

CPI FOOD DATA

Here is a breakdown of the food and beverage sectors of the Consumer Price Index, comparing August-September, July-August and September 1999-September 2000 changes in retail prices:

• Food and beverages _ up 0.1 percent from August to September; up 0.2 percent from July to August; up 2.6 percent for the 12 months ending with September.
• Food _ up 0.2 percent; up 0.2 percent; up 2.6 percent. Food at Home (grocery store-level prices) _ up 0.1 percent; up 0.3 percent; up 2.7 percent.

(NOTE: The following food categories are breakouts from Food at Home Index.)

• Cereals and bakery products _ down 0.3 percent; up 0.3 percent; up 1.8 percent.
• Meats, poultry, fish and eggs _ down 0.1 percent; up 0.2 percent; up 5.2 percent.
• Dairy and related products _ up 0.4 percent; up 0.3 percent; up 1.8 percent. Fruits and vegetables _ up 0.8 percent; up 1.2 percent; up 1 percent.
• Nonalcoholic beverages and related goods _ down 0.2 percent; down 0.3 percent; up 2.8 percent.
• Other foods at home _ up 0.1 percent; up 0.1 percent; up 1.8 percent.

(NOTE: The following is a further breakout of other foods at home)

• Sugars and sweets _ down 0.3 percent; up 0.4 percent; up 0.7 percent.
• Fats and oils _ down 0.1 percent; up 0.6 percent; up 0.1 percent.
• Other foods _ up 0.2 percent; down 0.1 percent; up 2.5 percent.
• Other miscellaneous foods _ down 1.6 percent; up 0.6 percent; up 2.3 percent.

NOTE: The following refers to prices at restaurants and other eateries.)

• Food away from home _ up 0.3 percent; up 0.2 percent; up 2.5 percent.
• Other foods away from home _ up 0.6 percent; up 0.6 percent; up 3.4 percent.

(NOTE: The following is a separate category.)

• Alcoholic beverages _ down 0.2 percent; up 0.2 percent; up 2.8 percent.

By WORTH WREN JR.
StoreAlliance.com

Sign up for our daily news round-up!

Give your business an edge with our leading industry insights.

Sign up