United States: Consumer prices in line with expectations in October
November 15, 2012
In October, consumer prices added 0.1% over the previous month in seasonally adjusted terms. The figure was down from the 0.6% increase recorded in September and was just in line with market expectations. The subdued monthly rise reflected how higher prices for food were partially offset by lower energy prices. Annual headline inflation rose from 2.0% in September to 2.2% in October, its highest level in six months. Meanwhile, the closely monitored core inflation index, which excludes food and energy, added 0.2% over the previous month (September: +0.1% month-on-month), also matching market expectations. As a result, annual core inflation remained unchanged at September's 2.0%. Annual average inflation over the previous 12 months inched down to 2.3% from 2.4% in September. The Federal Reserve expects PCE inflation (based on the price index for personal consumption expenditures) to average between 1.7% and 1.8% this year. For 2013, the Fed anticipates PCE inflation to range between 1.6% and 2.0%.