Nov. 13 (UPI) — Consumer Price Index inflation increased 0.2% in October for an un-adjusted annual rate of 2.6%, meeting expectations, according to the Bureau of Labor Statistics.
Both the monthly and annual inflation rate met Dow surveyed economists expectations.
“The index for shelter rose 0.4% in October, accounting for over half of the monthly all items increase,” the BLS said in a statement. “The food index also increased over the month, rising 0.2% as the food at home index increased 0.1% and the food away from home index rose 0.2%. The energy index was unchanged over the month, after declining 1.9% in September.”
Core CPI, excluding food and energy, was up 3.3% annually in October. It rose 0.3% in October.
The uptick in inflation was still within expectations but moved a little further away from the Federal Reserve’s 2% inflation target.
As the Fed continues to watch economic data to lower inflation to 2%, the incoming presidential administration’s policy plans could boost growth while pushing inflation higher.
Food at home prices as reflected by the CPI rose 1.1% over the past twelve months, with some categories of food seeing prices rise a bit more.
“The index for meats, poultry, fish, and eggs rose 1.9% over the last 12 months and the index for nonalcoholic beverages increased 1.7%,” the BLS statement said. “Over the same period, the fruits and vegetables index rose 0.9% and the dairy and related products index increased 1.3%. The index for cereals and bakery products increased 0.9% over the year and the index for other food at home increased 0.4%.”
CPI energy prices were unchanged in October. Energy costs declined 1.9% in September. Gasoline prices were down 0.9% in October.
“The energy index decreased 4.9% over the past 12 months,” the BLS statement said. “The gasoline index fell 12.2% over this 12-month span, and the fuel oil index fell 20.8% over that period. In contrast, the index for electricity increased 4.5% over the last 12 months and the index for natural gas rose 2.0%.”
Used car and truck prices rose 2.7% in October.
