United States: Inflation slows in October
November 20, 2013
In October, consumer prices inched down 0.1% over the previous month in seasonally-adjusted terms, which contrasted the 0.2% increase recorded in September. The result, which was below market expectations of a flat reading, mainly reflects lower prices for gasoline.
Annual inflation fell from 1.2% in September to 1.0% in October. The core inflation index, which excludes food and energy, remained at 0.1% for the second consecutive month, which was just below market expectations of a 0.2% rise. Annual core inflation did not change in October (September: 1.7% year-on-year). Annual average core inflation held steady at September's 1.8%.
FocusEconomics Consensus Forecast participants expect inflation to average 1.5% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, the panel expects average inflation to rise to 1.9%, which is unchanged from last month's projection.
Author: Carl Kelly, Economist