Groceries Feed Gains in the Everyday Price Index in September

by Robert Hughes
The American Institute for Economic Research

The AIER Everyday Price Index increased by 0.6 percent in September, the tenth consecutive month of gain. Over the last 10 months, the monthly increases have been between 0.4 percent and 1.2 percent, putting the 10-month gain at 7.5 percent or an annualized pace of 9.1 percent. Including the two months prior to the run of increases, the 12-month gain is 7.2 percent, the fastest pace since September 2008.

Food at home (a.k.a. groceries) was the largest contributor to the increase in the Everyday Price Index in September, contributing 24 basis points to the gain. Combined with a 10 basis-point contribution from food away from home (a.k.a.) restaurants, food categories added 34 basis points or about 60 percent of the total monthly rise. Household energy was the other significant contributor to the September increase, adding 11 basis points while motor fuel added 4 basis points. Combined food and energy categories accounted for 90 percent of the monthly gain in September.

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