U.S CPI Edged Up by 0.1% in October – November Report

The Bureau of Labor Statistics came out today with its recent report of the U.S CPI for October 2012. According to the recent update, the consumer price index edged up by 0.1% after it had increased by 0.6% in the past couple of months; in annual terms the US CPI rose by 2.2%. The consumer price index sans food and energy rose again by 0.2% during October and by 2% in the past twelve months.   

The prime reason for modest gain in the U.S. consumer price index was related to the mixed trend in energy and food prices: the energy index edged down by 0.2% (M-2-M) during October; the food index, on the other hand, edged up by 0.2%; in annual terms the energy index increased by 4%; among the energy products, the gasoline led the fall with a 0.6% drop during last month. During the past twelve months, the food index rose by 1.7%.

The core U.S inflation (CPI sans energy and food) edged up again by 0.2% during October and by 2.0% during the past 12 months. These figures didn’t coincide with the recent U.S PPI report, in which the core PPI edged down by 0.2% during last month.

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

The chart below presents the percent changes (M-O-M) of the U.S. CPI during the past couple of years (up to date).

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

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

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

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