An inflation report is published by the government, typically by the central bank, and provides detailed information on current inflation rates. It includes data on price changes for various expenditure categories like housing, food, and transportation, and identifies factors driving inflation.
A Consumer Price Index (CPI) report measures the average change in prices paid by urban consumers for a market basket of goods and services, providing a key indicator of inflation. Published monthly by national statistical agencies, it includes data on categories like food, housing, and transportation. The CPI report helps policymakers, economists, and investors understand economic trends and make informed decisions.
Inflation October 2024
In October, the Consumer Price Index (CPI) for all urban consumers rose by 0.2%, the same as the past three months. Over the last year, the overall CPI increased by 2.6%.
- Shelter costs went up by 0.4% in October, making up more than half of the monthly increase.
- Food prices also increased by 0.2%. Prices for food at home rose by 0.1%, and food away from home rose by 0.2%.
- Energy prices stayed the same in October after a 1.9% drop in September.
Excluding food and energy, other items’ prices increased by 0.3% in October. This includes shelter, used cars and trucks, airline fares, medical care, and recreation. Meanwhile, prices for apparel, communication, and household furnishings went down.
Looking at the past year:
- Overall prices rose by 2.6%.
- Prices excluding food and energy rose by 3.3%.
- Energy prices dropped by 4.9%.
- Food prices increased by 2.1%.
Source: BLS report
Key Highlights of Report:
Here are the key highlights from the October 2024 inflation report:
- Overall Inflation: The Consumer Price Index (CPI) increased by 0.2% in October, the same as the previous three months. Year-over-year, the CPI rose by 2.6%.
- Shelter Costs: Shelter costs increased by 0.4% in October, accounting for more than half of the overall CPI increase.
- Food Prices: Food prices rose by 0.2%, with food at home increasing by 0.1% and food away from home rising by 0.2%.
- Energy Prices: Energy prices remained unchanged in October after a 1.9% decline in September.
- Core Inflation: Excluding food and energy, core inflation increased by 0.3% in October, the same as in August and September stayed at 3.3%.
- Year-over-Year Changes: Over the last 12 months, the all items index increased by 2.6%, while the all items less food and energy index rose by 3.3%. The energy index decreased by 4.9%, and the food index increased by 2.1%.
Impacts of October Inflation Data on Market
The Federal Reserve may consider pausing the interest rate cut in December if inflation surprises on the upside. The October CPI report showed inflation at 2.6%, higher than the Fed’s wanted rate.
Market participants are closely watching the Fed’s next moves, with some expecting a quarter-point rate cut in December.
