United States Inflation October 2016

United States

United States: Inflation climbs to two-year high in October

November 17, 2016

In October, seasonally-adjusted consumer prices increased 0.4% from the previous month. The result came in slightly above the 0.3% increase in September and marked the fastest monthly increase in six months. October’s increase was on a par with market expectations and mainly reflected a boost in prices for energy, while food prices edged down. Inflation inched up from September’s 1.5% to 1.6% in October, the highest figure since October 2014.

Core consumer prices, which do not include food and energy prices, increased just 0.1% from the previous month, matching September’s reading and falling short of the 0.2% increase market analysts had forecast. Core inflation remained unchanged at September’s 2.2% in October.

Although the Federal Reserve targets an alternative measure of inflation called the personal consumption expenditures price index, it also follows the core inflation measure closely to judge whether inflationary pressures are increasing in the economy.

FocusEconomics Consensus Forecast participants expect inflation to average 1.3% in 2016, which is unchanged from last month’s forecast. For 2017, the panel expects inflation to average 2.2%, which is also unchanged from last month’s estimate.

Author:, Senior Economist

Sample Report

Looking for forecasts related to Inflation in United States? Download a sample report now.


United States Inflation Chart

USA Inflation October 2016

Note: Year-on-year and month-on-month variation of seasonally-adjusted consumer price index in %.
Source: Bureau of Labor Statistics.

United States Economic News

More news

Search form