United States: Inflation declines to lowest level since July in October
November 12, 2020
Consumer prices increased a seasonally-adjusted 0.04% in October over the previous month, coming in below September's 0.20% increase. October's result marked the softest reading since May. Looking at the details of the release, prices for housing increased at a faster rate in October. In contrast, prices for transportation increased at a slower rate. Meanwhile, food prices accelerated.
Inflation fell to 1.2% in October, easing slightly from September’s 1.4%. October's reading represented the weakest inflation rate since July. Annual average inflation remained at September's 1.4% in October. Lastly, core inflation edged down to 1.6% from the previous month's 1.7%. The core personal consumption expenditures price index—a gauge of household spending closely tracked by the Fed—accelerated to 1.4% in September, the latest month for which data is available. This was up from 1.3% in September and moved slightly closer to the Fed’s 2.0% target.