US CPI undershoots forecasts in October
By Alexander Bueso
Date: Tuesday 14 Nov 2023
(Sharecast News) - The cost of living in the U.S. fell back in October by more than expected.
According to the Department of Labor, in seasonally adjusted terms the country's Consumer Price Index was steady month-on-month (consensus: 0.1%).
That served to push the year-on-year rate of increase down from 3.7% for September to 3.2% last month (consensus: 3.3%).
More significantly, at the core level, which excludes food and energy prices, CPI advanced by 0.2% on the month and by 4.0% on the year (consensus: 4.1%).
The latter was one tenth of a percentage below the previous month's reading.
Dragging on the headline index, energy costs fell by 2.5% over the month, led by a 4.9% decline in petrol prices.
New vehicle prices meanwhile dipped by one tenth of a percentage point, while those for used cars and trucks fell by 0.8%.
Going the other way, prices for medical care commodities rose by 0.4% and those for transportation services by 0.8%.
"US inflation continues on a downward trend," said Richard Garland, chief investment strategist at Omnis Investments.
"This should reaffirm the Fed's view that interest rates are restrictive enough to bring inflation back to target, albeit they will keep rate hikes on the table until a low 2% inflation handle heaves into view."
-- More to follow --
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