WASHINGTON (dpa-AFX) - A closely watched report released by the Labor Department on Wednesday showed consumer prices in the U.S. rose in line with economist estimates in the month of October.
The Labor Department said its consumer price index crept up by 0.2 percent in October, matching the upticks seen in each of the three previous months as well as expectations.
The report also said the annual rate of consumer price growth accelerated to 2.6 percent in October from 2.4 percent in September. The faster growth also came in line with economist estimates.
The modest monthly increase by consumer prices was due in large part to higher shelter costs, which climbed by 0.4 percent in October after rising by 0.2 percent in September
Food prices also rose by 0.2 percent in October after increasing by 0.4 percent in September, while energy prices were unchanged in October after tumbling by 1.9 percent in September.
Excluding food and energy prices, core consumer prices climbed by 0.3 percent in October, matching the increases seen in each of the two previous months along with expectations.
The annual rate of core consumer price growth was unchanged from the previous month at 3.3 percent, which also in line with estimates.
The higher shelter costs contributed to the monthly increase by core consumer prices along with higher prices for used cars and trucks, airline fares, medical care, and recreation.
Meanwhile, prices for apparel, communication, and household furnishings and operations were among those that decreased over the month.
'The October CPI readings came right in line with expectations, keeping alive the prospect of another 25bps rate cut next month,' said Nationwide Chief Economist Kathy Bostjancic. 'With the 6-month core CPI annualized rate holding steady at 2.6%, we maintain our call for a December rate cut.'
She added, 'However, it is a close call then in prior months since the 3-month annualized rate accelerated to 3.6% from 3.1% in September.'
The Labor Department is scheduled to release a separate report on Thursday on producer price inflation in the month of October.
Producer prices are expected to rise by 0.2 percent in October after coming in unchanged in September, while the annual rate of growth is expected to accelerate to 2.3 percent from 1.8 percent.
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