WASHINGTON — The consumer price index Consumer Price Index came in exactly as expected, with a 0.1% rise for the overall reading and a 0.2% gain for the core reading.
As a result, the year/year rate for overall CPI slipped back to 2.0% from 2.2% in September, while the core rate rose to 1.8% from 1.7%, the first increase since January and the strongest pace since 1.9% in April.
Overall, the CPI data points to contained core consumer inflation, with the year/year rate remaining well below the 2% threshold, allowing the FOMC to maintain a slow pace of policy tightening.
Within core CPI, owners equivalent rents rose 0.3%, while the lodging away from home category rose 1.6%. Prices of new vehicles were down 0.2% while medical care prices rose 0.3%.
Energy prices fell 1.0% in the month, with a 2.4% decline in gasoline prices offsetting a 2.3% rise in fuel oil prices. Excluding only energy prices, the October CPI would have been up 0.2%.
Food prices were flat in October, with food at home flat and food away from home up 0.1%. Meat prices were higher, but fruit and vegetable prices were flat.
