Inflation Rate (CPI)

Previous: 3.7%

Forecast: 3.6%

The inflation rate (CPI) measures the average change in price of a basket of consumer goods and services. Lower than expected inflation is bullish, while higher than expected inflation is bearish.

The annual inflation rate in the US slowed to 3.2% in October 2023 from 3.7% in both September and August, and below market forecasts of 3.3%. Energy costs dropped 4.5% (vs -0.5% in September), with gasoline declining 5.3%, utility (piped) gas service falling 15.8% and fuel oil sinking 21.4%. Additionally, prices increased at softer pace for food (3.3% vs. 3.7%), shelter (6.7% vs. 7.2%) and new vehicles (1.9% vs. 2.5%) and continued to decline for used cars and trucks (-7.1%). On the other hand, prices rose faster for apparel (2.6% vs. 2.3%), medical care commodities (4.7% vs. 4.2%), and transportation services (9.2% vs. 9.1%). Compared to September, the CPI was unchanged, the least in fifteen months, and below forecasts of a 0.1% rise, as lower gasoline prices (-5%) offset increases in prices for shelter (0.3%), natural gas (1.2%) and food (0.3%). Meanwhile, the core CPI unexpectedly rose 4% on the year and 0.2% on the month, below forecasts of 4.1% and 0.3% respectively. source: U.S. Bureau of Labor Statistics