WASHINGTON, Reuters) - U.S. consumer prices rebounded more than expected in Octo...
WASHINGTON, Reuters) - U.S. consumer prices rebounded more than expected in October and underlying inflation picked up, which together with abating trade tensions and fears of a recession, support the Federal Reserve’s signal for no further interest rate cuts in the near term.
Excluding the volatile food and energy components, the CPI rose 0.2% after edging up 0.1% in September. The so-called core CPI rose as healthcare costs jumped by the most in more than three years. There were also increases in prices of used cars and trucks and recreation and rents.The Fed tracks the core personal consumption expenditures price index for its 2.0% inflation target. The core PCE price index rose 1.7% on a year-on-year basis in September and has fallen short of its target this year.
Stable inflation comes on the heels of fairly upbeat data, including better-than-expected job growth in October and an acceleration in services sector activity. In October, energy prices jumped 2.7% after falling 1.4% in the prior month. Energy prices accounted for more than half of the increase in the CPI last month.
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