WASHINGTON - The consumer price index rose 0.3% in October boosted by the largest monthly increase in vehicle prices in 28 years, the Labor Department reported today.
Year-over-year, consumer prices in October fell 0.2%, the smallest decline in prices since February when 12-month CPI increased. The 12-month CPI has declined for eight consecutive months.
Core consumer prices, which exclude food and energy costs, increased 0.2% for the month, the largest increase since June. Core prices rose 1.7% for the year ending in October.
Economists polled by Thomson Reuters expected the CPI to increase 0.5 in October and for core prices to increase 0.1%, according to the median estimate. Total consumer prices and core prices each rose 0.2% in September.
New vehicle prices jumped 1.6%, the largest monthly increase since May 1981. The federal subsidies for the "cash for clunkers" program, which ended August 25, were included in the CPI index recording the final price consumers paid. The end of the cash for clunkers program contributed to the "bounce back" in new vehicle prices, but was not the sole factor for the increase, a Labor Department official said. Depressed auto inventories and new car models added to the index also contributed to the increase, the official said.
Energy prices increased 1.5% as fuel oil prices jumped 6.3%. Gasoline prices rose 1.6%. Food prices increased 0.1%.
Real earnings in October declined 0.1%, the third straight 0.1% decline.
