October US CPI Report Shows Inflation Steady at a 2.6% Annual Rate

The Bureau of Labor Statistics reported that the Consumer Price Index rose 2.6% in October from year-ago levels—a slight increase from September’s 2.4% rate. Core CPI, which excludes volatile food and energy costs, increased 3.3% over the last 12 months after rising 3.3% in September.

The CPI rose 0.2% in October from month-ago levels, as it did in September. Core CPI climbed 0.3%, matching the September increase.

Economists had forecast the CPI would rise 0.2% on a monthly basis and 2.6% on an annual basis, according to FactSet’s consensus estimates. Economists had predicted that core inflation, which excludes volatile food and energy prices, would rise 0.3% for October over September and 3.3% over the last 12 months.

October CPI Report Key Stats

• CPI rose 0.2% for the month, as it did in September.
• Core CPI climbed 0.3% after rising by the same amount in September.
• CPI climbed 2.6% year over year after rising by 2.4% the prior month.
• Core CPI increased 3.3% from year-ago levels after increasing 3.3% in September.

Food prices rose 0.2% in October after growing 0.4% in September. Food-at-home prices rose 0.1% over the month, while food-away-from-home (restaurant) prices rose 0.2%.

Energy prices were mixed overall after dropping 1.9% the prior month. Utility (piped) gas service prices increased 0.3%, fuel oil prices fell 4.6%, gasoline prices fell 0.9%, and electricity prices climbed 1.2%. Shelter prices rose 0.4% after rising 0.2% in September.