WASHINGTON — October CPI was reported down 0.1% and core CPI grew 0.1%, modest numbers that suggest no acceleration in inflation.

October core CPI was up 0.1228% unrounded, and over-the-year rates were 1.0% higher overall as prices moderated in the last four months and core gained 1.7%.

Food prices were up 0.1% as meats, poultry, fish, and eggs rose. Cereal and dairy prices fell in a partial offset.

Energy posted a 1.7% decline, as gasoline (down 2.9%, but off 4.9% before adjustment), fuel oil and natural gas fell. This sector should continue to dampen inflation ahead.

In core, airfares posted a 3.6% rise, prescription drugs grew 0.4%, and used cars were up 0.3%. Apparel posted a 0.5% decline on dips in women's clothing and shoes, new autos were down 0.1% (flat before seasonal adjustment), and household furnishings fell 0.2%.

Owners' Equivalent Rent was up 0.2%, continuing its recent trend (it posted a 2.3% increase over the year). Shelter and medical care are the two areas that have prices that are rising at a faster pace.

Overall, though, there were no signs of inflation breaking higher as Q4 began.

The government shutdown had a small impact on CPI. That is, the sample was only about 75% of the usual amount due to the later than usual timing, and some resources used for checking and improvement were redirected into data collection and production. This does not suggest any major impact on the components, however.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.

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