According to a report by the Labor Department released Wednesday, consumer prices in the United States rose as anticipated in October. The consumer price index showed a 0.2% increase for October, aligning with the previous three months and meeting economists' expectations.
The report also noted that the year-on-year consumer price growth accelerated to 2.6% in October from 2.4% in September, again matching economists' projections.
The modest monthly uptick in consumer prices was largely driven by a 0.4% rise in shelter costs, following a 0.2% increase the month prior. Food prices increased by 0.2% in October after a 0.4% rise in September, while energy prices remained stable, having dropped by 1.9% in September.
When food and energy prices are excluded, core consumer prices rose by 0.3% in October, consistent with the increases seen in the two preceding months and in line with forecasts. The annual growth rate for core consumer prices remained steady at 3.3%, consistent with estimates.
The climb in core consumer prices was influenced by higher costs for shelter, used cars and trucks, airline fares, medical care, and recreation. However, prices for apparel, communication, and household furnishings fell during the month.
Nationwide Chief Economist Kathy Bostjancic noted, "The October CPI figures were exactly as expected, maintaining the possibility of a 25 basis point rate cut next month." She commented on the steady 6-month annualized core CPI rate at 2.6%, supporting the prediction for a December rate cut. However, she acknowledged that "it's a close call given that the 3-month annualized rate escalated to 3.6% from 3.1% in September."
Additionally, the Labor Department is set to release another report on Thursday regarding producer price inflation for October. Producer prices are anticipated to rise by 0.2% after remaining unchanged in September, with the annual growth rate expected to rise to 2.3% from 1.8%.
