Food, rent, owners' equivalent rent, and the price of electricity more than offset a decline in the price of gasoline in August. This post is a spotlight on food.

CPI data from the BLS, chart by Mish

What's in Your Basket?

• Meat, Poultry, Fish, and Eggs: 10.6 Percent
• Cereals, Bakery: 16.4 Percent
• Dairy: 16.2 Percent
• Fruits and Vegetables: 9.4 Percent
• Beverages: 13.4 Percent
• Other Food at Home: 16.7 Percent
• Away From Home: 8.0 Percent
• At Home: 13.5 Percent

Given rising tip defaults (and me paying them) I dispute the total cost of food away from home as up only 8.0 percent.

We have seen tip defaults as high as 25 percent. The most common default tip we see is 22 percent. It's getting absurd. 

CPI vs CPI Food

CPI data from the BLS, chart by Mish

CPI Year-Over-Year Details

• CPI: 8.3 Percent (down from 8.5 percent)
• CPI Food and Beverage: 10.9 Percent (up from 10.5 percent)
• CPI Food: 11.4 Percent (up from 10.9 percent)
• CPI Food at Home: 13.5 Percent (up from 13.1 percent)
• CPI Less Food: 7.8 Percent (down from 8.1 percent)
• CPI Energy (Not Shown): 23.8 percent (down from 32.9 percent)

The food index increased 11.4 percent over the last year, the largest 12-month increase since the period ending May 1979.

Stocks Hammered as CPI Rises a Mere 0.1 Percent More Than Expected

For more on this month's CPI, please see Stocks Hammered as CPI Rises a Mere 0.1 Percent More Than Expected

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