The first graph is the one Fed Chair Powell had mentioned earlier when services less rent of shelter was up 7.6% year-over-year. This has fallen sharply and is now up 2.8% YoY.
Click on graph for larger image.
This graph shows the YoY price change for Services and Services less rent of shelter through September 2023.
Services less rent of shelter was up 2.8% YoY in August, down from 3.1% YoY in August.
The second graph shows that goods prices started to increase year-over-year (YoY) in 2020 and accelerated in 2021 due to both strong demand and supply chain disruptions.
Commodities less food and energy commodities were unchanged YoY in September, down from 0.4% YoY in August.
Here is a graph of the year-over-year change in shelter from the CPI report (through August) and housing from the PCE report (through July 2023)
Shelter was up 7.1% year-over-year in September, down from 7.2% in August. Housing (PCE) was up 7.4% YoY in August, down from 7.7% in July.
The BLS noted this morning: “The index for shelter was the largest contributor to the monthly all items increase, accounting for over half of the increase.“
Core CPI ex-shelter was up 1.9% YoY in September, down from 2.3% in August.