ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, October 17, 1996 TAG: 9610170019
SECTION: BUSINESS PAGE: C-5 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: Associated Press
THE GAIN IN NEW CAR COSTS occurred as new model year vehicles arrived in dealer showrooms.
Higher food prices and one-time jumps in the cost of cars, clothing and air fares helped boost consumer inflation 0.3 percent in September. Analysts said the increase would fade as the temporary irritants disappear.
The Labor Department noted Wednesday that September's gain in the CPI was steeper than the 0.1 percent increase in August but matched the 0.3 percent advance in July. The rise met analysts' expectations.
Consumer prices rose at a 3.2 percent annual rate during the first nine months of 1996. Excluding the volatile food and energy components, the so-called core rate of inflation was up just 2.8 percent. The CPI rose 2.5 percent for all of 1995.
Food prices rose 0.5 percent in September, led by a 2.6 percent jump in fresh fruit. Prices for pork were up 1.6 percent; poultry, 0.8 percent; and beef, 0.6 percent.
But fresh vegetable costs fell 4.1 percent, including declines of 3.7 percent for tomatoes and 0.7 percent for lettuce.
Energy costs went unchanged as drops of 0.7 percent for natural gas and 0.4 percent for gasoline offset increases of 4.5 percent in fuel oil and 0.2 percent for residential electricity. Energy prices had fallen during the three previous months.
The index was pushed higher by increases of 0.5 percent for clothing, 0.6 percent for new cars and 2.9 percent for air fares.
The clothing increase accounted for about two-thirds of the overall advance. Analysts noted it followed three months of falling prices and accompanied the introduction of higher priced fall and winter fashions. They said it would not be repeated.
Likewise, the gain in new car costs - biggest since a 0.6 percent advance in January 1991 - occurred as new model year vehicles arrived in dealer showrooms.
LENGTH: Short : 46 linesby CNB