MNI DATA ANALYSIS: US October CPI Up 0.3%, Core Up 0.2%>

--Overall CPI Rises To +2.5% Y/Y, Core Falls To +2.1% Y/Y 

 By Kevin Kastner, Shikha Dave, and Harrison Clarke

     WASHINGTON (MNI) - The CPI data suggest that consumer inflation 

rose in October, with the headline and core measures in line with 

expectations and the year/year rate for the overall measure up from 

September, data released Wednesday morning by the Bureau of Labor 

Statistics showed. 

     Overall CPI posted a 0.3% increase as expected by analysts, but 

above the 0.2% gain expected by market participants, while the core CPI 

rose 0.2%, also in line with expectations. MNI analysis released Tuesday 

showed a tendency to accurately estimate core CPI, so this maintains 

that trend. 

     Unrounded, the month/month gain for overall CPI was 0.331%, on the 

upper side of the 0.3% increase, and the unrounded increase for core CPI 

was 0.193%, on the lower side of a 0.2% increase. 

--CORE YEAR/YEAR PRICES DECELERATE MODESTLY

     Overall, the data point to steady progress in consumer inflation, 

as the year/year rate for the overall measure rose while the core 

measure slowed slightly. 

     The year/year rate for overall CPI rose to 2.5% from 2.3%, while 

the year/year rate for core CPI was down to 2.1% from 2.2% in September. 

--RENTS UP, NEW VEHICLES PRICES DOWN

     The large owners' equivalent rents category rose 0.3% and medical 

care prices rose 0.2%, while new vehicle prices were down 0.2% and used 

vehicles prices rose 2.6%. 

     Energy prices rose by 2.4% for October after a 0.5% decline in 

September, showing an impact of Hurricane Michael. Gasoline prices rose 

3.0%, fuel oil prices rose 3.7%, electricity prices rose 2.3%, and gas 

utilities prices fell 0.6%. Energy prices were down 0.2% unadjusted. CPI 

excluding only energy was up 0.2%. 

     Food prices were down 0.1 in October, with food at home prices down 

0.2% and food away from home prices rose 0.1%. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,MT$$$$,M$U$$$]