October CPI Report Shows Inflation at a 3.2% Annual Rate, Better Than Expected

The Bureau of Labor Statistics reported that the Consumer Price Index rose 3.2% in October from year-ago levels—a decrease from September’s 3.7% rate, but well below the June 2022 peak of 9.1%.

Core CPI, which excludes volatile food and energy costs, climbed 4.0% in October over the last 12 months after rising 4.1% in September.

The headline rise of 3.2% came in under economists’ expectations of 3.3%. The core CPI reading also came in under expectations of 4.1%.

The CPI held steady in October from month-ago levels after rising 0.4% in September, a better than expected reading for the latest month. Core CPI rose 0.2% after rising 0.3% in September. Economists had expected a 0.3% gain for October in core CPI.

October CPI Report Key Stats

• CPI held steady for the month after rising 0.4% in September.
• Core CPI rose 0.2% after growing by 0.3% in September.
• CPI climbed 3.2% year over year after rising by 3.7% the prior month.
• Core CPI rose 4.0% from year-ago levels after growing 4.1% in September.

Food prices increased 0.3% in October after increasing 0.2% in September. Food-at-home prices increased 0.3% over the month, while food-away-from-home (restaurant) prices increased 0.4%.

Energy prices were mixed overall for the month after increasing 1.5% the prior month. Utility (piped) gas service prices gained 1.2%, fuel oil prices declined 0.8%, gasoline prices fell 5.0%, and electricity prices climbed 0.3%.

In October, shelter prices rose 0.3% after rising 0.6% in September.