Consumer Prices and Housing starts Both Leap in September

Financial News Network
October 21, 2011 AT 12:32 AM
The Commerce Department announced on Wednesday that privately owned homes were started at 658,000 annual rate last month, a 15% increase from August and the best rate since April 2010.Although, the level is approximately half the 1.2 million economists say is consistent with healthy housing markets.Work on single-family homes, around two-thirds of home construction, increased at 1.7% while apartment building surged 53.44, and building permits fell 5%.The Commerce Department also announced in the inflation report that consumers purchased more food and gasoline last month.The Consumer Price Index rose 0.3% in September, below a 0.4% rise in August.Excluding food and energy, so-called core prices increased 0.1%, smallest rise since March.Food prices rose 0.4%, pushed up by big increases in the dairy, cereals, and fruits and vegetables categories. Gas prices rose 2.9%, driving up energy costs 2% and clothing prices fell sharply.