Beneath the Skin of CPI Inflation: “Core CPI” Accelerates for Third Month On Sharp Flip of Used Vehicle Prices, Sticky Services Inflation. Gasoline Plunged

by Wolf Richter
Wolf Street

Surging homeowner insurance and other homeowner costs fuel OER CPI, which is now hotter than rent CPI.

On a month-to-month basis, the “core” Consumer Price Index – which excludes the volatile food and energy components – rose by 0.31% (+3.8% annualized) in September from August, the third acceleration in a row, and the biggest increase since March, driven by suddenly rising prices of used vehicles, in what is a sharp flip from the steep plunges before, and stubbornly high inflation in services (blue line in the chart below).

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