The US Labor Department’s Bureau of Labor Statistics reported that despite a decline of 0.1% in December on a seasonally adjusted basis, the all-items Consumer Price Index rose 1.9% in 2018.
That was a smaller annual gain than the 2.1% increase in 2016 and 2017 but larger than the increases in any of the years from 2012 to 2015, the BLS said. It was also slightly larger than the 1.8% average annual increase over the past 10 years.
FOOD INDEX UP
The food index increased 1.6% in 2018, the same as in 2017, the BLS said. The annual index for food at home increased 0.6% following a 0.9% increase in 2017.
Four of the six major grocery store food group indices increased in 2018, the BLS said. The index for cereals and bakery products rose the most, rising 1.7% after declining in 2016 and 2017.
The fruits and vegetables index, which rose 1.5% in 2017, increased 1.6% in 2018, the BLS said. The index for nonalcoholic beverages rose 1.4% last year after being unchanged in 2017.
The index for other food at home also increased in 2018, rising 0.2% after advancing 0.5% the prior year, the BLS said.
PROTEIN INDEX DECLINED
In contrast, the index for meats, poultry, fish and eggs declined in 2018, falling 0.4% after rising 2.8% in 2017, the BLS said.
The dairy and related products index fell slightly last year, decreasing 0.1%, the fourth yearly decline in a row.
FOOD AWAY FROM HOME UP
The index for food away from home rose 2.8% in 2018 after a 2.5% increase the prior year, the BLS said. Over the last 10 years, the food index rose at an average annual rate of 1.6%.
The food at home index rose at a 0.9% rate, and the index for food away from home increased at a 2.4% rate since December 2008, the BLS said.
ENERGY INDEX UP SLIGHTLY
The energy index fell slightly in 2018, declining 0.3 percent after rising 6.9% in 2017, the BLS said. The gasoline index fell 2.1% after rising in 2016 and 2017. The decline in the gasoline index more than offset increases in other energy component indexes.
The index for electricity increased 1.1% last year after rising 2.6% the 2017, the BLS said. The index for natural gas rose for the third straight year, increasing 2.3%.
The fuel oil index rose 1.9% in 2018, the BLS said. The energy index increased at a 1.9% average annual rate over the past 10 years.
ALL ITEMS LESS FOOD, ENERGY UP
The index for all items less food and energy rose 2.2% in 2018, a larger increase than its 1.8% rise in 2017 and 1.8% average annual increase over the past 10 years, the BLS said.
The shelter index rose 3.2%, the same as in 2017, the BLS said. The rent index rose 3.5%, while the index for owners’ equivalent rent increased 3.2%.
CATTLE, BEEF RECAP
Cash cattle traded last week at $123 to mostly $124 per cwt on a live basis, up $1 from the previous week and at $195 to mostly $197 on a dressed basis, up $1 to $2.
The USDA choice cutout Monday was down $0.44 per cwt at $212.02, while select was off $0.81 at $205.46. The choice/select spread widened to $6.56 from $6.19 with 97 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Friday, was $144.65 per cwt, down $0.81. This compares with Monday’s Jan settlement of $144.67, down $1.45.