The Consumer Price Index (CPI) rose 4.7% on a year-over-year basis in October, up from a 4.4% increase in September. This was the largest gain since February 2003. Excluding energy, the CPI rose 3.3% year over year, matching the increase in September.
On a monthly basis, the CPI rose 0.7% in October, the largest gain since June 2020 (+0.8%), when energy prices began to recover following steep declines during the early months of the pandemic. On a seasonally adjusted monthly basis, the CPI rose 0.5%.
Energy prices rise in October
Energy prices were up 25.5% year over year in October, primarily driven by an increase in gasoline prices. Compared with October in the previous year, consumers paid 41.7% more for gasoline, as shortages in other energy sources, such as coal and natural gas, led major economies to use more oil for power generation. This contributed to higher prices at the pump.
Similarly, fuel oil and other fuels (+48.1%) are subject to oil price dynamics, and prices remained high compared with October 2020. Natural gas prices rose 18.7% on a year-over-year basis.
Passenger vehicle prices rise year over year
Prices for passenger vehicles remained high compared with October 2020, increasing 6.1% year over year amid a global shortage of semiconductor chips. In addition, prices for passenger vehicle parts, accessories and supplies rose 3.6% year over year.
Consumers pay more for meat
Prices for meat products (+9.9%) continued to rise in October, as fresh or frozen beef (+14.0%) and processed meat (+8.5%), which includes bacon (+20.2%), put upward pressure on prices. Labour shortages that have slowed down production, ongoing supply chain challenges and rising prices for livestock feed continued to factor into higher prices for meat.
