–Core Prices Flat, Both Including and Excluding Energy Prices
–Energy Prices Rose By 0.1%, But Gasoline Prices Down 0.5%.
By Kevin Kastner
WASHINGTON (MaceNews) – The October consumer price data were below expectations, with flat readings for both headline and core CPI. Both measures were expected to rise by 0.2%.
The year/year rates for consumer inflation slipped back and are now even further below their pre-COVID levels.
Energy prices rose by 0.1% in October, though gasoline prices fell by 0.5%. Electricity prices surged by 1.2%. Unadjusted energy prices fell by 1.2%, with unadjusted gasoline prices down 1.6% compared with seasonal adjustment expectations for a smaller decrease.
Food prices were rose by 0.2% in the month, with food at home prices up 0.1%. At the same time, food prices away from home rose by 0.3%.
Within the core, the relatively large owners’ equivalent rent category rose 0.2%, but lodging away from home prices fell by 3.2%. Airline fares surged by 6.3%.
Apparel prices fell by 1.2% after a 0.5% decrease in the previous month. Prices of new vehicles were up 0.4%, while used vehicle prices fell by 0.1% after a 6.7% increase in September and a 5.4% gain in August.
Overall CPI prices were up 1.2% from their year ago level, slower than the 1.4% rate in September and well below the pre-COVID rate of 1.5% in March. Prices excluding food and energy were up 1.6% year/year, down from 1.7% in September. The year/year rate was 2.1% in March before the shutdowns.
Released at the same time, initial jobless claims fell by 48,000 to 709,000 in the November 7 week, pulling down the four-week moving average by 33,250 to 755,250, a 15th straight decline.
Despite the downward trend in claims, the message is still one of elevated filings that reflect continued layoffs.
Continuing claims fell by 436,000 to 6.786 million in the October 31 week, as benefits continued to expire for many workers.
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Contact this reporter: kevin@macenews.com.
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