CPI Up 0.2 Percent; Core Prices Unchanged – Lowest Annual Change Since Before WWII

In October, the Consumer Price Index rose 0.2 percent. This was the fifth consecutive monthly increase in the index. As was the case in most recent months, the index was pushed upward by energy prices, but which rose 2.6 percent in October. The core index, which excludes prices of energy and food products, was unchanged for the third straight month.

From a year prior, the CPI was 1.2 percent higher, just barely above its recent low of 1.1 percent in September. The core CPI was up by just 0.6 percent from a year prior. This was lowest year-over-year change in the index’s history going back to the 1950s. Despite rising energy prices as of late, there is a very low level of underlying inflation. This number further supports the Fed’s view that inflationary pressure is currently very mild if not outright deflationary.