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US Consumer Inflation Unexpected Softening of in October

US Consumer Inflation Unexpected Softening of in October

The October 2023 US Consumer Inflation and Price Index, as reported by the U.S. Bureau of Labor Statistics, underscores a consistent trend in overall price stability, following a 0.4 percent rise in September.

Over the past twelve months, the all-items index exhibited a 3.2 percent increase before seasonal adjustments. Notably, the October headline CPI stood at 0.0%, below the expected 0.1%, and the Core CPI for the same period was 0.2%, falling short of the predicted 0.3%.

US Consumer Inflation: Housing and Energy Index Trends, October Food Price Movements

In the housing sector, the index for shelter maintained its upward trajectory. Countering a decline in the gasoline index and resulting in a month-over-month stabilization in the seasonally adjusted index. Conversely, the energy index experienced a 2.5 percent drop. That primarily attributed to a significant 5.0-percent decrease in the gasoline index, outweighing increases in other energy components.

Food prices saw a 0.3 percent increase in October, building upon the 0.2 percent rise in September. Specifically, the index for food at home rose by 0.3 percent. While the index for food away from home increased by 0.4 percent.

Also Read: US Treasury Yields Stand Strong ahead of inflation Data

October Core US Consumer Inflation Slows to 0.2%, Varied Index Movements

Core inflation, excluding food and energy, exhibited a 0.2 percent rise in October, slightly slower than the 0.3 percent increase observed in September. Notable increases were observed in indexes related to rent, owners’ equivalent rent, motor vehicle insurance, medical care, recreation, and personal care. Conversely, indexes for lodging away from home, used cars and trucks, communication, and airline fares witnessed declines during the month.

Yearly Trends in October 2023 Consumer Price Index: A Comprehensive Analysis of Key Indicators

Analyzing yearly trends, the all-items index recorded a 3.2 percent increase over the 12 months ending in October, indicating a moderation compared to the 3.7-percent increase in the 12 months ending in September. The all-items index, excluding food and energy, witnessed a 4.0 percent increase over the past 12 months, representing its most modest 12-month change since September 2021. Furthermore, the energy index registered a 4.5 percent decrease for the 12 months ending in October. While the food index saw a 3.3 percent increase over the past year.

In summary, the October 2023 Consumer Price Index reflects a steady trend in overall prices. With particular emphasis on housing costs and food prices. Despite slight moderation in certain core elements, the yearly trends suggest a more measured pace of inflation compared to recent months.


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