Medical care helps drive CPI up 0.4% in September

The Consumer Price Index increased 0.4% in September on a seasonally adjusted basis compared to a 0.1% increase in August, according to the Bureau of Labor Statistics. Medical care, along with shelter and food were three of the biggest contributors to the increase. Overall, in the last 12 months, all items have increased 8.2%, compared to 8.3% last month.

Food increased 0.8% for the month, and is up 11.2% year over year. Shelter is up 0.7% for the month and 6.6% year over year, and medical care increased 1% and 6.5% respectively. Physicians' services increased 0.5% over the month, while the index for hospital servicesincreased 0.1%. The index for prescription drugs fell 0.1% in September.

The good news is that gasoline declined 4.9%, but natural gas (+2.9%) and electricity (+0.4%)increased. Other declining categories included used cars (-1.1%), apparel (-0.3%), and medical care commodities (-0.1%).

The index for all items minus the volatile food and energy categories rose 0.6% in September – the same as last month.

The report has most economists expecting another .75% interest rate hike from the Federal Reserve Bank as it continues to attempt to cool inflation.