The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4% in October on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, "headline" inflation increased 1.8%.
Both numbers topped the consensus forecast of 0.3% for October inflation and 1.7% for year-over-year. That would normally be alarming for stock and bond markets, but core inflation - which strips out food and energy - matched the consensus for the month at 0.2%. Year-over-year core inflation was reported as 2.3%, just below the consensus estimate of 2.4%.
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