The latest pricing data released by the Bureau of Labor Statistics (BLS) paint an orderly picture for consumer prices in October, as inflation continued to cool and prices remained steady for the most part.
The Consumer Price Index (CPI) for all items was unchanged in October, following a 0.2 percent decline in September, indicating a further deceleration in inflation. Prices also fell 0.3 percent in the 12 months ending October 2019, with the largest 12-month changes occurring in the categories of healthcare, energy, and shelter.
Compared to October 2018, the 12-month deflationary trend accelerated from the previous month’s 0.1 percent decline, signaling an overall slowdown in consumer prices.
In addition, inflation in the core consumer price index (excluding volatile prices in food and energy) declined 0.2 percent in the 12 months through October 2019, after a 0.1 percent gain in September.
The moderation in this index – which is closely watched by the Federal Reserve to measure underlying inflationary pressures – comes as a result of waning growth in prices for shelter, apparel, transportation services, and medical care services.
The latest figures echo the results of the Producer Price Index (PPI), which showed that producer prices fell 0.4 percent in October, after declining 0.5 percent in September. This downward trend in Producer Prices point to the strong possibility of a further deceleration in overall inflation in the months ahead.
Overall, the latest BLS report paints a picture of continued inflation deceleration as prices remain mostly steady. Most analysts remain cautiously optimistic that, barring any drastic changes, prices should remain stable in the months ahead. It is worth noting, however, that any sudden swings in energy or food prices could derail this stability, which consumers and the Federal Reserve should remain wary of.
The latest pricing data released by the Bureau of Labor Statistics (BLS) paint an orderly picture for consumer prices in October, as inflation continued to cool and prices remained steady for the most part.
The Consumer Price Index (CPI) for all items was unchanged in October, following a 0.2 percent decline in September, indicating a further deceleration in inflation. Prices also fell 0.3 percent in the 12 months ending October 2019, with the largest 12-month changes occurring in the categories of healthcare, energy, and shelter.
Compared to October 2018, the 12-month deflationary trend accelerated from the previous month’s 0.1 percent decline, signaling an overall slowdown in consumer prices.
In addition, inflation in the core consumer price index (excluding volatile prices in food and energy) declined 0.2 percent in the 12 months through October 2019, after a 0.1 percent gain in September.
The moderation in this index – which is closely watched by the Federal Reserve to measure underlying inflationary pressures – comes as a result of waning growth in prices for shelter, apparel, transportation services, and medical care services.
The latest figures echo the results of the Producer Price Index (PPI), which showed that producer prices fell 0.4 percent in October, after declining 0.5 percent in September. This downward trend in Producer Prices point to the strong possibility of a further deceleration in overall inflation in the months ahead.
Overall, the latest BLS report paints a picture of continued inflation deceleration as prices remain mostly steady. Most analysts remain cautiously optimistic that, barring any drastic changes, prices should remain stable in the months ahead. It is worth noting, however, that any sudden swings in energy or food prices could derail this stability, which consumers and the Federal Reserve should remain wary of.
