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Med Care, Used Cars Pull Down CPI

US

Medical care and used vehicles were key players in the October reading, as suggested in our preview:

  • Medical care (-0.5% M/M, with commodities flat and services -0.6% M/M) makes up about 8% of the CPI basket and subtracted -0.04ppt from the headline figure.
  • As noted in the preview: "Medical care service inflation should see a significant, mechanically driven step down as source data for the health insurance sub-component have their annual reset (a factor that will remain in place until Sep’23)"
  • Used vehicles prices (about 4% of the basket) contracted 2.4% M/M and shaved 0.09ppt from the headline CPI.

Source: BLS, MNI

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