The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in October, according to the U.S. Bureau of Labor Statistics (BLS). Over the last 12 months, the all-items index increased 2.6 percent.
According to the BLS report, which tracks changes in the prices of commonly purchased goods and services”Indexes that increased in October include shelter, used cars and trucks, airline fares, medical care, and recreation. The indexes for apparel, communication, and household furnishings and operations were among those that decreased over the month.”
Housing-related inflation accounted for half of the monthly price increase, while energy prices remained stable, after declining 1.9 in September. The Bureau stated: “The index for shelter rose 0.4 percent in October, accounting for over half of the monthly all items increase. The food index also increased over the month” reporting the highest food jump in fruit and vegetables, at 0.4 percent.
Other indexes that increased in October include shelter, used cars and trucks, airline fares, medical care, and recreation. The BLS reported that the indexes for apparel, communication, and household furnishings and operations decreased over the month. The used car index jump is assumed to be linked to hurricane-related purchases.
Reflecting on the latest BLS findings, Larry Summers said, “If [Trump] carries through on what he said during his campaign, there will be an inflation shock significantly greater than the one the country suffered in 2021.”
Although the annual rate of inflation moved higher last month for the first time since March, this isn’t expected to affect the rate cut expected in December.
By CEO NA Editorial Staff
