U.S CPI Rose Again by 0.6% in September – October Report

The Bureau of Labor Statistics published today its latest report of the U.S CPI for September 2012. According to the latest update, the consumer price index rose again by 0.6% after it had increased by the same rate in the previous month; in annual terms the US CPI rose by 2%. The consumer price index sans food and energy edged up again by 0.1% September and by 2% in the past 12 months.   

The prime reason for rise in the U.S. consumer price index was related to the increase in energy prices: the energy index hiked by 4.5% (M-2-M) during September; the food index, on the other hand, edged up by 0.1%; in annual terms the energy index rose by 2.3%; among the energy products, the gasoline led the rise with a 7% increase during last month. During the past twelve months, the food index increased by 1.6%.

The core U.S inflation (CPI sans energy and food) edged up again by 0.1% during September and by 2.0% during the past 12 months. These figures coincide with the recent U.S PPI report, in which the core PPI remained unchanged during last month.

In the previous monthly report for August 2012 CPI hiked by 0.6% while the core CPI edged up by 0.1% (M-2-M).

The chart below shows the percent changes (M-O-M) of the U.S. CPI during 2011-2012.

U.S. inflation 2012 Rate (percent) October 2012

Since the core CPI continues to rise, it could mean the U.S economic development is progressing.

This news doesn’t seem to have much of an effect on the path of the U.S dollar against other currencies or commodities prices.

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