MNI BRIEF: US Oct CPI Matches Expectations; Shelter Rebounds
MNI (WASHINGTON) - U.S. CPI inflation in October largely matched Wall Street expectations, printing a 0.244% increase for all items and 0.280% for core prices. Higher than expected energy costs boosted overall inflation to the high side of expectations for a 0.2% increase.
Over the past 12 months, headline inflation accelerated two-tenths to 2.6% and core stayed at 3.3%. Core inflation accelerated to 3.6% from 3.1% on a three-month annualized basis. The data should keep the Federal Reserve on track to reduce interest rates for a third straight meeting next month. (See: MNI INTERVIEW: Fed To Pause, Take Stock Early 2025 -Lockhart)
Shelter prices reaccelerated in October to a 0.4% rise from 0.2% in September, accounting for over half of the headline increase. Core non-housing services, or supercore CPI, slowed to a 0.314% increase, slightly below expectations for a 0.39% rate.