Consumer prices in the United States rose for a fourth consecutive month in October, adding a seasonally adjusted 0.2% over the previous month. The price rise followed on a 0.1% increase registered in September and surprised the market on the downside, as analysts had expected prices adding 0.4%. As a result of the monthly price rise, annual headline inflation inched up to 1.2% (September: 1.1%). The monthly price rise reflected higher gasoline prices, which surged 4.6% over the previous month, thus driving energy prices up 2.6% in October. In contrast, prices for food added a moderate 0.1% over the preceding month. The core inflation index, which does not include prices for food and energy, was unaffected by these price pressures and recorded the third consecutive month-on-month flat reading in October. As a result, annual core inflation inched down from 0.8% in September to 0.6%, which marks the lowest core inflation rate since the inception of the core inflation index in 1957. The development of core inflation, which is among the most closely watched indicators by monetary policy makers, bolsters the case for the aggressive easing that culminated in the announcement of the QE2 programme in October. The Fed anticipates PCE inflation (based on the price index for personal consumption expenditures) to average between 1.0% and 1.1% this year, and to rise to between 1.1% and 1.6% in 2011. Consensus Forecast participants see inflation averaging 1.6% this year, which is unchanged from last month's forecast. For 2011, the panel anticipates average inflation inching down to 1.4%, which is down 0.1 percentage points over last month's estimate.
United States Inflation
Core inflation drops to lowest level on record
November 17, 2010
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United States Economic News
October 14, 2016
In September, nominal retail sales expanded 0.6% over the previous month.
October 7, 2016
Non-farm payrolls grew 156,000 in September, which came in below August’s upwardly-revised increase of 167,000 (previously reported: +151,000).
October 3, 2016
The ISM manufacturing index increased more than expected in September and returned to expansionary territory, after a temporary setback in August.
September 27, 2016
The S&P/Case-Shiller 20-city home composite index rose 0.6% in July over the previous month.
September 27, 2016
Following an increase in August, when the Conference Board’s consumer confidence index jumped to 101.8 points, consumer sentiment among U.S. households rose further in September.