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Prices & Quotes

US core CPI dips unexpectedly in October

By Alexander Bueso

Date: Wednesday 13 Nov 2019

LONDON (ShareCast) - (Sharecast News) - The cost of living in the US increased more quickly than expected last month amid rapid increases in food and energy prices, especially for the latter, but stripping out those two categories it surprised to the downside.
According to the Department of Labor, headline consumer prices jumped at a 0.4% month-on-month pace in October, pushing the year-on-year rate of gain to 1.8% (consensus: 1.7%).

At the core level however, the rate of advance in CPI was more subdued, slipping from a 2.4% pace for September to 2.3% in October (consensus: 2.4%).

Energy costs, in particular, pushed headline CPI higher, rising by 2.7%, whereas a 1.8% drop in apparel prices weighed on core CPI, alongside falls of 0.1% in commodity prices outside of food and energy and a 0.2% drop in those of new vehicles.

Food prices meanwhile increased at a 0.2% month-on-month clip.