Inflation Continues to Rise While 12-Month Rate Drops  

The Consumer Price Index rose 0.4% again in October on a seasonally adjusted basis after rising 0.4% in September, the U.S. Bureau of Labor Statistics reported. Over the last 12 months, the “all items” index increased 7.7% before seasonal adjustment, down from 8.2% for the prior month. While inflation is continuing, BLS noted that this is the smallest 12-month increase since the period ending January 2022. 

The U.S. Consumer Price Index report for October showed:   

The index for shelter contributed to over half of the monthly all items increase, with the indexes for gasoline and food also increasing. In fact, the shelter index increased by 0.8% in October, which is the largest monthly increase in that index since August 1990, and 6.8% over the last year, making up 40% of the total increase in all items less food and energy. The food index has increased by 10.9% over the last year, while the energy index increased by 17.6% over the same timeframe. Other notable increases over the last year include medical care at 5% and new vehicles at 8.4%. 

Stocks rallied on the news that year over year inflation is cooling. However, the continuing inflation makes it likely that the U.S. Federal Reserve will again increase interest rates in December. However, the increase could be less than the most recent increases. Click here to read the BLS press release.