In the U.S., topline inflation is up across DPI categories for the first time in after five months of deflation (0.5% in the all-items index and 0.5% in the all-items less grocery index). Prices remain down year-over-year in the all-items index (-0.6%) and down for the all-items less grocery index (-2.2%).
In September, inflation was primarily in travel, consistent with the beginning of the holiday travel booking season: domestic flights are up 1.5% month-over-month, while domestic hotels are showing prices up 1.6%. On the retail side, tablets (2.8% MoM), apparel (1.1% MoM), and toys (1.1% MoM) showed the largest levels of inflation in September.
Deflation in September was concentrated in int’l flights (-4.0% MoM), televisions (-1.5% MoM), and appliances (-0.8%).
In grocery, inflation in September (0.4%) was driven by dairy products other than milk (other dairy products are showing 1.4% inflation MoM, ice cream at 0.9%), eggs (0.8%) and flour (0.7%).
Across the pond, consumers in the U.K. are facing continued price rises in grocery prices., where food prices are up 0.1% MoM in August and up 3.0% year-over-year for the twelve months ending in September.
Inflation is widespread across the U.S. in September with 42 states showing inflation in September (or near-zero positive inflation) with only 9 states showing deflation month-over-month. Inflation in general is driven by price increases in hotels and flights.