Defying Forecasts, Inflation Disappeared In October

Summary

  • Both all-items and core inflation came in at 0.0% for the month, less than the consensus forecasts.
  • The BLS called the report “mixed,” reflecting large variances in price increases or decreases across the economy.
  • For holders of TIPS and I Bonds, non-seasonally adjusted inflation was also very close to zero, at 0.04% for the month.

Despite predictions for a moderate increase, U.S. inflation fell flat in October as deflation set in across several sectors of the economy.

The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in October on a seasonally-adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all-items index increased 1.2%. Both of those numbers fell below the consensus estimates of 0.2% for the month and 1.3% for the year.

Read my full analysis on SeekingAlpha.com

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About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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