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Last Update: 16-Nov-11 09:42 ET
CPI Declines for the First Time Since June
A decline in energy prices caused headline CPI to decline 0.1% in October. That was the first decline since June. The Briefing.com consensus expected CPI to remain flat.
Just like the October PPI, the drop in energy costs in October was due to timing issues. The BLS monitors consumer inflation during one week of the month. It just so happened that the survey period in September was during a mini-surge in crude and gasoline prices. That led to elevated energy costs for the month.
As the prices quickly retreated, the October survey period was compared to the relatively high September levels. That caused energy prices to fall 2.0% for the month, completely removing the September gain.
Food prices increased 0.1% in October.
Excluding food and energy, core CPI increased 0.1% in October, exactly what the consensus expected.
Higher shelter costs were partially offset by a decline in new and used motor vehicle prices.
Just like the October PPI, the drop in energy costs in October was due to timing issues. The BLS monitors consumer inflation during one week of the month. It just so happened that the survey period in September was during a mini-surge in crude and gasoline prices. That led to elevated energy costs for the month.
As the prices quickly retreated, the October survey period was compared to the relatively high September levels. That caused energy prices to fall 2.0% for the month, completely removing the September gain.
Food prices increased 0.1% in October.
Excluding food and energy, core CPI increased 0.1% in October, exactly what the consensus expected.
Higher shelter costs were partially offset by a decline in new and used motor vehicle prices.
