The U.S. October consumer price index report was extremely favorable as it printed a record monthly drop of 1.0% in data dating back to February 1947, and the outlook is for additional price moderation ahead as energy prices retreat.

The prior record CPI drop was 0.9% in July 1949, possibly during a period of price controls.

Core CPI declined 0.1%, and a key is that core is decelerating. Over the year core stands at plus 2.2%, down from plus 2.5% in September. This is expected in a declining economy and is very good news for savers and the bond market.

Over the year overall, CPI was up 3.7%.

— Market News International

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