US Inflation Rate Up to 0.2%

Consumer prices in the United States increased 0.2 percent year-on-year in October of 2015 after being flat in September and higher than market expectations. On a monthly basis, consumer prices also rose 0.2 percent, the biggest gain in four months as cost of most goods and services including gasoline increased.

Year-on-year, food inflation was recorded at 1.6 percent, the same as in September. Additional upward pressure came from prices of services less energy (up 2.8 percent from 2.7 percent in September), namely shelter (up 3.2 percent, the same as in September), medical care (up 3 percent from 2.4 percent in September) and transportation services (up 1.8 percent from 2.2 percent in September). In contrast, energy cost slumped 17.1 percent, lower than an 18.4 percent drop in the previous month. Annual core inflation excluding food and energy was steady at 1.9 percent. 

On a monthly basis, consumer prices edged up 0.2 percent, rebounding from a 0.2 percent fall in September. The food index, which increased 0.4 percent in September, rose 0.1 percent in October, with four of the six major grocery store food group indexes rising. The energy index advanced 0.3 percent in October, following a 4.7 percent drop in September; major energy component indexes were mixed. 

The index for all items less food and energy rose 0.2 percent in October, the same increase as in September. Advances in the indexes for shelter (0.3 percent, the same as in September) and medical care (0.8 percent from 0.3 percent in September) were the largest contributors to the increase, with the indexes for personal care, airline fares, recreation, alcoholic beverages, and tobacco also rising. In contrast, the indexes for apparel, new vehicles, household furnishings and operations, and used cars and trucks all declined in October.

US Inflation Rate Up to 0.2%

BLS | Joana Taborda |
11/17/2015 1:50:50 PM