**MNI DATA IMPACT: US Oct CPI +0.4%, Core Up +0.2%>

--Owners Equivalent Rent +0.2%; Energy Prices Up +2.7%%

By Brooke Migdon

     WASHINGTON (MNI) - The October CPI data were stronger than 

expected with energy prices boosting headline inflation, data 

released Wednesday by the Bureau of Labor Statistics showed. 

     Overall CPI increased 0.4%, above expectations for a 0.3% gain. 

Core prices rose 0.2%, in line with market expectations. Year/year core 

prices slowed modestly to 2.3% in October from 2.4% in September. 

     The headline year/year rate grew slightly to 1.8% from 1.7% in 

September. Excluding only energy, the year/year rate was 2.3%, matching 

September's pace.

     Here are some of the key takeaways from the data released Thursday: 

     - The core CPI reading was 0.356% unrounded, on the low end 

of a 0.4% reading. 

     - The large owners' equivalent rent category increased 0.2%, 

bringing the year/year rate up to 3.3%, down slightly from 3.4% in 

September. Recreation prices rose 0.7% after a flat reading in September 

and used vehicle prices increased 1.3%. 

     - Energy prices grew by 2.7%, its first gain after declining 

four times in the past five months. Gasoline prices, which account for 

4.0% of the total CPI basket, carried the expansion, rising by 3.7% in 

October after falling 2.4% in September. Electricity prices also posted 

stronger growth in October, increasing 1.6% after a flat reading in 

September. Excluding energy prices, headline CPI would have been 0.2%. 

     - Food prices rose 0.2%, but food away from home prices slowed 

modestly to 0.2 after rising 0.3% in September. Excluding only food, CPI 

would have been up 0.4%. 

     - Apparel prices plumeted in October, sinking by 1.8% after falling 

0.4% in September. Apparel, one of the categories targeted by President 

Donald Trump's Sept. 1 tariffs on imports from China, were expected to 

rise in October.                                                                               

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

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