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Monday, December 6, 2021

Fed’s Inflation Indicators Flat to Unchanged

#inflation #disinflation #Fed #CPI #economy

CPI, the Fed’s measure of prices paid by US consumers was unchanged in October, missing forecasts that called for a gainer and indicating light inflation as the medical chaos lingers.

The reading on the CPI (consumer price index) was the tamest in 5 months and followed a 0.2% advance in September, Labor Department data showed Thursday.

Compared with a year earlier, the gauge rose 1.2%. The core CPI, which excludes food and energy costs, was also unchanged from the prior month and up 1.6% from a year earlier.

The median estimate of economists called for a 0.1% monthly increase in CPI and a 0.2% gainer in the core CPI gauge. The report showed components were mixed as higher airfares and new-car prices helped offset declines in costs of gasoline, medical care, motor-vehicle insurance and clothing. Food inflation picked up by the most since June as grocery costs stabilized and consumers continued to dine out.

The data signal inflation remains subdued as the medical emergency chaos continues to weigh on demand in some parts of the economy.

While inflation stabilized as the US economy picked up in Q-3, risks of a broad acceleration are low given weakness in services activity.

That qualifies as disinflation.

Have a healthy day, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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