Consumer prices in the U.S. increased in line with economist estimates in the month of October, the Labor Department revealed in a report on Thursday.
The Labor Department said the consumer price index rose by 0.4 percent in October after climbing by 0.3 percent in September.
A jump in gasoline prices accounted for more than half of the increase by the index, with gas prices surging up by 7.0 percent in October following a 5.8 percent spike in the previous month.
Prices for fuel oil also showed another significant increase, contributing to a 3.5 percent jump in overall energy prices.
Meanwhile, the report said food prices were unchanged for the fourth straight month, as a drop in prices for food at home offset an uptick in prices for food away from home.
Excluding food and energy prices, core consumer prices inched up by 0.1 percent for the second straight month. Economists had expected core prices to rise by 0.2 percent.
The modest increase in core prices came as the shelter index climbed by 0.4 percent in October, matching the growth seen in September.
Prices for apparel, new vehicles, and motor vehicle insurance also increased, while prices for personal care, communication, used cars and trucks, recreation, and airfare declined.
Compared to the same month a year ago, the headline consumer price index was up by 1.6 percent in October, reflecting a modest acceleration from the 1.5 percent increase seen in September.
"As CPI converges on 2%, inflation is no longer a massive concern for the FOMC and will not be a hindrance for the prospects of a December hike," said James Smith, Developed Markets Economist at ING.
Meanwhile, the report said the annual rate of core consumer price growth slowed to 2.1 percent in October from 2.2 percent in September.
The Labor Department released a separate report on Wednesday showing that producer prices came in flat in October, as an increase in prices for goods was offset by a drop in prices for services.
The report said the producer price index for final demand was unchanged in October after rising by 0.3 percent in September. Economists had expected another 0.3 percent increase.
Core producer prices dipped by 0.2 percent in October after edging up by 0.2 percent in September. Core prices had been expected to rise by another 0.2 percent.
The annual rate of producer price growth still accelerated to 0.8 percent in October from 0.7 percent in September, while the annual rate of growth in core producer prices held at 1.2 percent.
by RTT Staff Writer
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