In September 2022, the inflation rate in the U.S. increased by 0.4% from the previous month, representing an increase of 8.2% over the past twelve months.
The September 2022 Consumer Price Index (CPI) for the U.S. is 296.808. A year ago, in September 2021, the CPI was 274.310. While the inflation rate has increased, the growth rate has slowed slightly from 8.3% in August 2022 to 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 historical 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 September 2022 include the following:
- Food – 11.2% increase
- Energy – 19.8% increase
- Commodities (less food and energy commodities) – 6.6% increase
- Services (less 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.
September 2022 Monthly Inflation Increases
On a monthly basis, the increase from August 2022 to September 2022 for the one-month period is as follows:
- Food Prices: 0.8% increase
- Energy Prices: -2.1% decrease
- Commodities (less food and energy commodities): 0.0% change
- Services (less energy services): 0.8% increase
The graphic below breaks down the September 2022 US inflation rate showing the 12-month increase from September 2021 to September 2022, the one-month inflation rate increase from August 2022 to September 2022, and what the inflation rate was this time last year.
Factors that Drove US Inflation in September 2022
Some of the key factors that drove the increase in the inflation rate for September 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 3.00% to 3.25%, which was announced on September 21, 2022. This was the fourth consecutive interest rate increase overall this year. Interest rate hikes are done to curb price increases and are a strategy used to decrease the rate of inflation. The first interest rate hike in 2022 was announced on March 17, 2022, and increased the rate from 0.25% to 0.5%.
- 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. The global availability of wheat exports, which historically come from Ukraine, has increased food costs. While supply chain issues have also driven increases in food costs, energy costs have increased the costs of running and operating farms. Soaring fertilizer costs have also driven up food production 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.
October 2022 Inflation Rate Update
Foreign USA’s October inflation report was released on November 10, 2022. This update publicizes the current inflation rate over the previous 12 months, ending in October 2022.