The average cost of a market basket of goods and services in the United States increased 0.3 percent in October from September according to the U.S. Bureau of Labor Statistics' Consumer Price Index (CPI). October's index of 181.3 was 2.1 percent higher than the October 2001 index of 177.6.
The price index for energy rose 1.9 percent during October for the fourth consecutive strong monthly increase. Other categories that saw increases in October were medical care (+0.6 percent), transportation (+0.6 percent), housing (+0.3 percent), recreation (+0.3 percent) and food and beverages (+0.1 percent). Other goods and services decreased (-0.5 percent) while apparel, education and communication were unchanged.
The CPI is based on prices of food, clothing, shelter, fuels, transportation fares, charges for doctor's and dentist's services, drugs, and other goods and services that people buy for day-to-day living. Prices are collected in 87 urban areas across the country (including Kansas City and St. Louis) from about 50,000 housing units and approximately 23,000 stores, hospitals, and other types of service establishments.
The actual index is expressed as a number derived by comparing the current cost of goods and services to the cost of the same items between 1982-1984. The reference year is given a value equal to 100. Subsequent indices are expressed as a percentage of the base year.
