U.S. Annual Retail Inflation Accelerates in October

U.S. Annual Retail Inflation Accelerates in October

Investing.com  | Nov 14, 2018 08:32AM ET

U.S. Annual Retail Inflation Accelerates in October

Investing.com - U.S. consumer prices accelerated in October, underlining the case for the Federal Reserve to move forward with its plan for gradual interest rate hikes.

The Labor Department said on Wednesday its consumer price index (CPI) rose 0.3% last month, picking up from the 0.1% increase seen in September.

The reading was in line with analysts’ forecasts.

In the 12 months through October, inflation rose 2.5%, in line with expectations and up from 2.3% in September.

Core CPI, a key gauge of underlying consumer price pressures that excludes food and energy costs, increased by 0.2% from a month earlier, matching consensus. The annual increase in the core CPI was 2.1%. Economists had forecast an increase of 2.2%.

Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure precisely because they exclude the volatile food and energy categories. The central bank usually tries to aim for 2% core inflation or less.

Recent solid U.S. economic reports and an upbeat assessment of the economy from Fed Chairman Jerome Powell have triggered expectations for a faster-than-expected pace of rate hikes from the Fed.

Although the Fed left interest rates on hold last week, the central bank delivered an upbeat assessment of the economy and labor market, reaffirming expectations for a December rate hike. Policymakers are widely expected to raise interest rates at the end-of-the-year meeting for what would be the fourth time in 2018 and currently have plans for three further rate hikes in 2019.

Investors will now look ahead for any further insight into the U.S. monetary policy outlook from a discussion between Powell and Dallas Fed President Robert Kaplan about national and global economic issues at 6:05 PM ET (23:05 GMT) Wednesday.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (UK) English (India) English (Canada) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes