US consumer prices rose 0.3pc in October and were up 2.0pc year-on-year, according to figures released today by the Labour Department. Headline consumer prices edged up in October, marking the largest monthly increase since August, largely on the back of increased energy costs. The core rate, which excludes volatile energy and food prices, increased 0.2pc, and was up 2.2pc year-on-year. Both the gain in headline CPI and the core rate were in line with Wall Street economists' expectations. In September, the overall CPI rose 0.2pc, unchanged from the initial estimate while the core rate increased 0.1pc in September, also unchanged from the initial estimate.
For the first ten months of the year, the CPI rose at a 2.7pc annual pace, up from a 2.1pc gain over the same period last year. The core rate has risen at a 2.1pc pace over the first ten months of the year, down from a 2.7pc rate over the same period last year. Strong energy price gains were largely responsible for the rise in the overall CPI during October, although the headline rate was also supported by a slight rise in food costs. //www.fxcentre.com