The October Consumer Price Index from the Bureau of Labor Statistics showed average prices for all components of the index continued to rise in September.
The rise mirrored the 2019-2023 average and the 2024 index but at higher levels than both, according to graphs of the Bureau’s numbers by the Livestock Marketing Information Center in Denver.
AVERAGE CONTINUES RISE
The average CPI in the October report was 324.8, up 0.8, or 0.25%, from 324.0 a month earlier. It also was up 9.5, or 3.01%, from 315.3 a year earlier and up 45.6, or 16.3%, from the previous five-year average of 279.2.
If the CPI continues to follow the average, it will level somewhere within the last quarter and perhaps decline minutely in December, only to begin rising again in January.
MEATS RISING FASTER THAN AVERAGE
Contributing to the rising CPI is the cost of meats, the BLS said. The Index for September was 369.7, up 5.8, or 1.59%, from 363.9 a month earlier, up 29.0, or 8.51%, from 340.7 a year earlier and up 71.0, or 23.8%, from the previous five-year average of 298.7.
This year’s monthly CPI for meats tended to follow the five-year trend average until July. The meats CPI tends to stop going up in July, going up slightly in October only to decline a bit in December.
However, this year, the monthly line made a decided upturn in July, and the direction hasn’t changed since, widening the gaps between itself and both last year and the 2019-2023 average.
POULTRY CPI CONTINUES DECLINE
Unlike the CPI for meats, the CPI for poultry continued its slight decline in September, the BLS said. The index for September was 313.1, down 0.0, or 0.29%, from 314.0 a month earlier but up 4.4, or 1.43%, from 308.7 a year earlier and up 41.8, or 15.4%, from the previous five-year average of 271.3.
This year’s monthly CPI for poultry peaked in June at 315.7, and it has declined slightly ever since.
Typically, the index tends to rise into October and flatten in November and December. Last year, the index peaked in August and declined into November and rallied a bit in December.
FOOD AND BEVERAGES INDEX UP
The index for all food and beverages continued to climb in September to its 2025 high of 339.4, up 1.0, or 0.30%, from 338.4 in August, up 10.0, or 3.04%, from 329.4 a year earlier and up 51.3, or 17.8%, from the 2019-2023 average of 288.1.
The index tends to keep rising into a December high, as it did last year.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $237.30 per cwt to $243.18, compared with the previous week’s range of $234.39 to $237.11 per cwt. FOB dressed steers and heifers went for $368.29 per cwt to $381.29, compared with $365.05 to $373.86.
The USDA choice cutout Friday was up $2.62 per cwt at $375.76 while select was up $3.23 at $357.97. The choice/select spread narrowed to $17.79 from $18.40 with 113 loads of fabricated product and 21 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $410.48 per cwt, and 50% beef was $155.88.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.00 to $1.10 a bushel over the Dec corn contract, which settled at $4.23 1/4, down $0.04 3/4.
No new live cattle delivery intentions were tendered Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $367.08 per cwt, down $3.54. This compares with Friday’s Oct contract settlement of $354.30, down $9.05, and Nov’s $352.20, down 9.25.