United States: Inflation increases in October
Latest reading: Inflation came in at 2.6% in October, up from September’s 2.4% and moving further above the Fed’s 2.0% target. This was due to housing prices rising at a faster rate in October, and prices for transportation declining at a more moderate rate.
Annual average inflation ticked down to 3.0% in October (September: 3.1%). Meanwhile, core inflation was steady, coming in at September’s 3.3% in October.
Finally, consumer prices rose 0.24% in October over the previous month, picking up from the 0.18% rise logged in September.
Panelist insight: TD Economics’ Thomas Feltmate said:
“Progress on the inflation front has slowed to a snail’s pace in recent months as services inflation is looking increasingly sticky, while much of the disinflationary pressure from fallings goods prices is now in the rear-view mirror. All of this suggests that the last leg lower on returning inflation to the Fed’s 2% target is going to occur much more gradually.”