In October 2022, the inflation rate in the U.S. increased by 0.4% from the previous month, representing an increase of 7.7% over the past twelve months.
The October 2022 Consumer Price Index (CPI) for the U.S. is 298.012. A year ago, in October 2021, the CPI was 276.589. While the inflation rate has increased, the growth rate has slowed as it rose on a month-to-month basis of 8.2% in September 2022.
If you want to learn more about the inflation rate in the US, how it is calculated and measured, and the historic inflation rate over the past 20+ years, we have a detailed article that charts the yearly and monthly rates.
Yearly Inflation Increases by Category
The major inflation categories and their 12-month change for October 2022 include the following:
- Food at Home (Groceries) – 12.4% increase
- Food Away from Home (Dining Out) – 8.6% increase
- Energy – 17.6% increase
- Commodities (less food and energy commodities) – 5.1% increase
- Services (fewer energy services) – 6.7% increase
These cost of living increases reported by the U.S. Bureau of Labor Statistics (BLS) highlight the year-over-year increase of the CPI.
October 2022 Monthly Inflation Increases
On a monthly basis, the increase from September 2022 to October 2022 for the one-month period is as follows:
- Food at Home (Groceries): 0.4% increase
- Food Away from Home (Dining Out): 0.9% increase
- Energy Prices: 1.8% increase
- Commodities (less food and energy commodities): -0.4% decrease
- Services (less energy services): 0.5% increase
The graphic below breaks down the October 2022 US inflation rate showing the 12-month increase from October 2021 to October 2022, the one-month inflation rate increase from September 2022 to October 2022, and what the inflation rate was this time last year.
Factors that Drove US Inflation in October 2022
Some of the key factors that drove the increase in the inflation rate for October include:
- Interest Rate Hikes: The Federal Reserve Bank (the central bank of the United States, also known as the Fed) increased the Federal Funds Rate, also known as the interest rate, from 3.75% to 4.00%, which became effective on November 2, 2022. The interest rate has been increased four consecutive times by 0.75%. Overall, interest rates have been increased by the Fed six times in 2022. Interest rate hikes are done to curb price increases and are a tactic used to decrease the rate of inflation.
- Fuel Oil/Gas/Energy Prices: Energy prices and gas prices tend to be volatile given the geopolitical complications globally, especially where large quantities of oil and natural gas are extracted. The situation in Ukraine, coupled with OPEC decisions related to oil production, have all impacted the inflation rate in the U.S.
- Food Prices: A key driver of inflation rate increases is the cost increase for food prices. A major outbreak of bird flu has decimated the stock of poultry which has increased prices for food. Additionally, the global availability of wheat exports, which historically come from Ukraine, has also increased food costs.
- Supply Chain Issues: The price pressures that supply chain issues can cause drive increases in prices of all goods that require transportation. The increase in fuel costs, as well as problems in securing logistics and supply chain labor, can impact the CPI and, subsequently, the inflation rate.
- Medical Care Cost Increases: Americans are seeing an increase in medical care costs, especially given the growing shortage of doctors and medical providers following the stresses of the pandemic on the healthcare system and the growing educational expense.
November 2022 Inflation Rate Update
Foreign USA’s November inflation report will be released on December 13, 2022. This update will publicize the current inflation rate over the previous 12 months, ending in November 2022.