The consumer index increased by 8.2% between September 2021 and September 2022. The consumer price index increased by 0.4% in September compared to August. This was in line with projections from analysts.
Overall, the energy index has seen the highest increase, at 19.8%, but every index increased by over 5%. Factors contributing to these increases include inflation, the pandemic, climate change, the conflict in Ukraine, and more. Together, these world events have driven prices up for a variety of reasons.
To find out more, we’ve gathered data on the consumer price index in 2022. According to our extensive research:
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The fuel oil index increased the most in 2022, at a whopping 58.1% (despite the fact that it’s been decreasing since June).
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The medical care commodities index increased the least in 2022, at 3.7%.
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The South saw the highest consumer price index increase between 2021-2022, at 8.7%.
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The Northeast saw the lowest consumer price index increase between 2021-2022, at 7.2%.
Consumer Price Index Un-Adjusted 12-Months
| Index | Unadjusted percent change (Sep. 2021-Sep. 2022) |
|---|---|
| Food | 11.2% |
| Energy | 19.8% |
| Commodities less food and energy commodities | 6.6% |
| Services less energy services | 6.7% |
Detailed Consumer Price Index Un-Adjusted 12-Months
| Index | Unadjusted percent change (Sep. 2021-Sep. 2022) |
|---|---|
| Food at home | 13.0% |
| Food away from home | 8.5% |
| Gasoline | 18.2% |
| Fuel oil | 58.1% |
| Electricity | 15.5% |
| Utility (piped) gas service | 33.1% |
| New vehicles | 9.4% |
| Used cars and trucks | 7.2% |
| Apparel | 5.5% |
| Medical care commodities | 3.7% |
| Shelter | 6.6% |
| Transportation services | 14.6% |
| Medical care services | 6.5% |
Consumer Price Index Percent Change By Region
| Region | Unadjusted percent change (Sep. 2021-Sep. 2022) |
|---|---|
| Northeast | 7.2% |
| Midwest | 8.1% |
| South | 8.7% |
| West | 8.3% |
Consumer Price Index Percent Change By City
| Cities | Unadjusted percent change (Sep. 2021-Sep. 2022) |
|---|---|
| Chicago-Naperville-Elgin, IL-IN-WI | 8.7% |
| Los Angeles-Long Beach-Anaheim, CA | 7.8% |
| New York-Newark-Jersey City, NY-NJ-PA | 6.2% |
Consumer Price Index By Relative Importance
| Index | Relative importance ratio |
|---|---|
| Commodities | 39.49 |
| Services | 60.51 |
| Durables | 12.72 |
| Nondurables | 26.77 |
| Housing | 42.24 |
| Education and communication | 6.02 |
| Recreation | 4.99 |
| Food and beverages | 14.50 |
| Apparel less footwear | 1.84 |
| Fuels and utilities | 4.99 |
| Medical care | 8.34 |
| Transportation | 18.77 |
| Utilities and public transportation | 8.48 |
| Household furnishings and operations | 4.77 |
Consumer Price Index FAQ
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What is the meaning of the Consumer Price Index?
The Consumer Price Index, or CPI, is a measure of the average change over time that urban consumers pay for consumer goods and services. For example, if the average price of a loaf of bread for an urban consumer was $2.35 in 2021, but that number increased to $2.50 12 months later, this would be indicative of a 6.38% CPI increase.
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Is CPI better when it is high or low?
CPI isn’t necessarily better or worse when it is high or low, but an extreme negative or positive change can indicate problems within the economy. This is because a higher CPI indicates higher inflation, while a falling CPI can go as far as to indicate deflation.
Overall, slow and steady increases or decreases in CPI typically show a healthy economy, while rapid increases or decreases indicate an inflation or deflation crisis.
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What happens when CPI increases?
When CPI increases, it shows an increase in the average change in prices over time. In turn, these numbers can lead to adjustments in the cost of living and income, especially if they aren’t keeping up with rising CPI.
For example, if the CPI increases by 8.2%, but your wages remain stagnant, this would eventually lead to an increase in the cost of living, as goods are increasing in price faster than your pay increases.
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What causes the consumer price index to increase?
Supply and demand are some of the biggest factors that cause the consumer price index to increase. This is because a lack of raw materials to create a product will drive up the price, while an abundance will lower it. Additionally, high demand will also raise the price, especially when it exacerbates a lack of raw materials.
For example, between 2021-2022, there was a huge increase in the cost of fuel oil. Supply and demand have played a huge role in this increase for a few reasons:
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A lack of travel led to a massive drop in demand for fuel during the height of the Pandemic in 2020. Prices fell.
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Companies responded by producing less oil to save money.
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As of 2021, people began to travel more again, causing demand to increase.
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Companies did not increase the production of oil to pre-Covid levels.
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Between increased demand and a lack of supply, prices increased drastically.
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Conclusion
With a CPI of over 296 as of September 2022, it’s clear the CPI has seen massive increases within the past few years. Before the Pandemic, CPI only increased by an average of 1-2% per year. However, in the past year, CPI increased by a massive 8.2%
That’s the difference between a CPI increase from 251.1 to 255.7 (2018-2019), to 271 to 296 (2021-2022). In turn, this drastic increase indicates issues with inflation.
Overall, to tackle the unhealthy increases within the consumer price index, many factors would need to be tackled. Supply and demand issues caused by foreign and domestic events, as well as climate-related events would need to be addressed.
However, as things currently stand, the increase in CPI will continue as a marker of current inflation trends.
References
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BLS –Consumer Price Index
Author
Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.
