Consumer price inflation slowed in October for a fourth month in a row, as gains in costs of energy, food and goods eased on the back of aggressive Federal Reserve monetary tightening.
The consumer price index (CPI) — which tracks prices of a basket of finished products and services — rose in October by 7.7pc from a year earlier, down from 8.2pc in September, the Bureau of Labor Statistics said today. The October gain was the lowest since January and down from a 9.1pc peak in June.
So-called core inflation, which strips out the more volatile energy and food costs, rose at a 6.3pc annual pace, down from the prior month's 6.6pc increase, which was the highest since 1982.
The slowing inflation numbers increase the odds of a 50 basis-point rate hike by the Fed at its December policy meeting, following four consecutive 75 basis-point hikes. The Fed recently signaled it was likely to reduce the magnitude of rate hikes but was likely to increase its ultimate level of rates higher than previously expected to quash inflation that has been running around four-decade highs.
Compared with the prior month, the CPI rose by 0.4pc in October on a seasonally adjusted basis, matching September's gain after a 0.1pc gain in August, but well off the cyclical peak of 1.3pc in June.
Core CPI rose in October by 0.3pc from the prior month following two months of 0.6pc monthly gains. The core goods index fell by 0.4pc on the month, while services excluding energy rose by 0.5pc.
The energy index rose in October by 1.8pc from the prior month after posting monthly declines of 2.1pc in September and 5pc in August.
Over the 12-month period, the energy index increased last month by 17.6pc, slowing from a 19.8pc gain in the 12 months through September. The gasoline index in October increased by 17.5pc after a 18.2pc gain in the prior period and the fuel oil index rose by 68.5pc after a 58.1pc gain in September.
The piped natural gas index rose at an annual pace of 20pc last month after a 33.1pc gain in September.
The food index increased by 10.9pc in the 12 months through October, slowing from 11.2pc in September, while the shelter index rose last month by 6.9pc, accelerating from 6.6pc.
The new car index rose in October by 8.4pc on the year after climbing by 9.4pc in September, and the used car index rose by an annual pace of 2pc, slowing from 7.2pc in the prior month.
