US 'core' October CPI falls short of analysts' forecasts
By Alexander Bueso
Date: Wednesday 14 Nov 2018
(Sharecast News) - Inflation in the US accelerated as expected last month, pushed higher by increased energy costs, but underlying price pressures were more modest than economists had anticipated.
According to the Bureau of Labor Statistics, consumer prices increased at a 0.3% month-on-month pace in the US during the month of October, pushing the annual rate of increase up to 2.5%.
Those increases were exactly as economists had anticipated.
In September, CPI had risen by 2.3% on the year.
Versus September, energy prices jumped by 2.4% and while those for foor dipped by one tenth of a percentage point.
To take note of, versus a year ago, gasoline prices climbed 16.1% and those of fuel oil by 26.2%.
Another chief contributor to the increase in CPI last month was a 2.6% bounce in user car and truck prices.
At the so-called 'core' level however, which excludes the impact of increases in food and energy costs, CPI inflation dipped from September's 2.2% year-on-year clip to 2.1% (consensus: 2.2%).
Commenting on Wednesday's figures, Ian Shepherdson at Pantheon Macroeconomics said: "In one line: Still benign [...] Elsewhere, the data remain calm, with no real evidence of broad-based pressures, in either direction. Next month's headline CPI will be depressed by falling gasoline prices, but the near-term impact on the core will be minimal; airline fares will decline but they are a very small component."
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