The federal government’s Consumer Price Index (CPI) for residents of urban areas rose 0.2 percent in September, driven largely higher prices for used cars and trucks, the Bureau of Labor Statistics announced Tuesday (Oct. 13).
In addition to a 6.7 percent increase in the index for used cars and trucks, the cost of natural gas increased 4.2 percent, the cost of energy services overall increased 1.6 percent and the cost of food eaten away from home rose 0.6 percent.
Among the biggest decreasing costs during September were fuel oil, down 5.3 percent; food at home, down 0.4 percent; and apparel, down 0.5 percent.
While prices of used vehicles took off, the price of new vehicles was up 0.3 percent.
The new automobile market has been something of a conundrum during COVID-19.
Automakers have been hurt by production slowdown, a sharp drop-off in visits by customers to dealerships and lingering fear among potential car-buyers about their long-term financial futures. In the automakers’ favor: Many experts predict ride-sharing and car-sharing services will lose much of their popularity. Those customers buying cars increasingly are using digital platforms to do so, dealers report.
Year-over-year, the biggest declines in September 2020 compared with September 2019 were fuel oil, down 27.2 percent; gasoline, down 15.4 percent; apparel, down 6.0 percent; and transportation services, down 5.1 percent.
The biggest increases in September 2020 compared with September 2019 were used cars and trucks, up 10.3 percent; medical care services, up 4.9 percent; food at home, up 4.1 percent; and food away from home, up 3.8 percent.
September’s increase of 0.2 percent in the all-items CPI was the smallest increase in four months. The figure fell in March, April and May.
The overall CPI for the country, including urban and rural areas, began to rise in June. Food and energy prices drove that increase and those that followed.
