Consumer prices were very mixed in September with headline CPI accelerating to +1.4% YoY and core CPI decelerating to +1.7% YoY.

Source: Bloomberg

The three most important factors for Americans - food, shelter, and energy costs - were a mixed bag:

The most notable driver on the downside was shelter/rent inflation collapsing:

Shelter inflation up 2.04% Y/Y, lowest since Feb 2012

Rent inflation up 2.72% Y/Y, lowest since April 2013

The energy index fell 7.7 percent over the past 12 months with its component indexes mixed. The gasoline index decreased 15.4 percent and the fuel oil index fell 27.2 percent. In contrast, energy service indexes rose, with the index for natural gas increasing 3.8 percent and the index for electricity advancing 0.7 percent.

The food index was unchanged in September after rising 0.1 percent in August. The index for food at home fell 0.4 percent in September as five of the six major grocery store food group indexes declined. The index for nonalcoholic beverages fell 0.8 percent, its largest monthly decline since December 2010. The index for other food at home declined 0.6 percent in September after rising 0.5 percent in August. The index for dairy and related products declined 0.5 percent in September after rising 1.5 percent in August.    

Despite the September decline, the food at home index increased 4.1 percent over the last 12 months. All six major grocery store food group indexes rose over that span, with increases ranging from 2.6 percent (cereals and bakery products) to 6.3 percent (meats, poultry, fish, and eggs). The index for food away from home rose 3.8 percent over the last year. The index for limited service meals increased 5.5 percent and the index for full service meals rose 2.8 percent over the last 12 months.