The Consumer Price Index beat expectations and reached a 30-year high, according to the latest data from the Bureau of Labor Statistics…(BLS)
- M-O-M: The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9%
in October after rising 0.4% in September.
- Y-O-Y: Over the last 12 months, the all items index increased 6.2% after rising 5.4% in September.
BEAT THE STREET: Economists had projected a smaller increase for CPI with month-over-month gains of 0.6% and year-over-year gains of 5.8%.
Food prices continue to skyrocket with all-item index up 0.9% month-over-month and is up a whopping 5.3% year-over-year.
- The food at home index was up 5.4% year-over-year thanks to skyrocketing increases in the index for meats, poultry, fish, and eggs which was up 11.9% followed by the index for pork was (+14.1%) and the index for beef (+20.1%.)
Energy prices are also up big with a month-over-month gain of 4.8% and a 30.0% year-over-year jump.
- GAS INDEX rose 6.1% in October, its fifth consecutive monthly increase.
- NATURAL GAS INDEX rose 6.6% over the month, its largest monthly increase since March 2014.
- ELECTRICITY INDEX was up 1.8% in October, its largest 1-month increase since May 2014.
WORRISOME: Heather Long at the Washington Post highlighted an important note in the inflation report. “The monthly all items seasonally adjusted increase was broad-based, with increases in the indexes for energy, shelter, food, used cars and trucks, and new vehicles among the larger contributors.” Long notes, “This is about more than used cars now” (Twitter)
WHAT WILL THE FED DO: CNBC reports that traders in the futures markets moved up their expectations for the first Federal Reserve interest rate hike to July from September, following a hotter than expected inflation report…(CNBC)
