Following yesterday’s hotter than expected PPI, Core Consumer Prices printed above expectations (+1.8% YoY vs +1.7% YoY exp) – the fastest rise since April 2017.
Headline CPI was in line with expectations at 2.0% – a slight slowing from last month…
The biggest driver of the increase in consumer prices was a 2.3% surge in fuel prices
The shelter index rose 0.3 percent, with the indexes for rent and owners’ equivalent rent also rising 0.3 percent. The index for lodging away from home continued to increase, rising 1.6 percent.
The medical care index rose 0.3 percent, with the index for hospital services rising 0.5 percent and the physicians’ services index increasing 0.2 percent. However, the index for prescription drugs declined 0.2 percent.
The index for used cars and trucks rose in October, increasing 0.7 percent; this ended a streak of nine consecutive declines. The tobacco index rose in October, increasing 1.6 percent. The education index increased 0.3 percent, and the index for wireless telephone services rose 0.4 percent. The indexes for personal care, airline fares, and motor vehicle insurance also increased in October.
The index for new vehicles continued to decline, falling 0.2 percent in October after a 0.4-percent decrease in September. The index for apparel declined 0.1 percent in October, the same decline as in September; the recreation index also fell 0.1 percent. The index for household furnishings and operations was unchanged in October after declining in 5 of the 6 prior months.
