Consumer Price Index (CPI) Up Slightly in October

The Consumer Price Index was slightly up in October by 0.6%. The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to assess price changes associated with the cost of living; the CPI is one of the most frequently used statistics for identifying periods of inflation or deflation.

Prices on average, as measured by the CPI, were 0.6% higher in October compared with October 2016.

The most notable changes in the year were increases in Housing, Water, Electricity, Gas & Other Fuels (+3.1%), Restaurants & Hotels (+2.7%), Education (+1.8%) and Alcoholic Beverages & Tobacco (+1.2%). There were decreases in Clothing & Footwear (-4.7%), Furnishings, Household Equipment & Routine Household Maintenance (-3.6%), Food & Non-Alcoholic Beverages (-1.2%) and Recreation & Culture (-1.2%).

Consumer Prices in October, as measured by the CPI, decreased by 0.1% in the month. During October of last year, prices fell by 0.5% in the month. The most significant monthly price changes were decreases in Transport (-1.2%) and Clothing & Footwear (-1.2%). There were increases in Education (+1.4%) and Alcoholic Beverages & Tobacco (+1.0%).