Stocks rise after cold inflation print

“Core” inflation is rising at the slowest pace since September 2021

The latest CPI report came in cooler than Wall Street expected.

Alexandra Channel reports from Yahoo Finance:

Consumer prices were unchanged from the previous month in October as lower oil prices pushed headline inflation lower while “core” inflation rose at the slowest annual pace since September 2021, according to a European Central Bank report. Latest data Released by the Bureau of Labor Statistics Tuesday morning.

The Consumer Price Index (CPI) showed that prices rose 0% from last month and 3.2% from a year earlier in October, a slowdown from the 0.4% monthly increase in September and the 3.7% annual gain in prices.

Economists had expected prices to rise by 0.1% on a monthly basis and 3.3% on a yearly basis, according to Bloomberg data.

As expected, lower energy costs led to lower headline numbers with energy prices down 2.5% month-on-month, driven by lower gas prices, which fell 5% during October.

On a “core” basis, which excludes the more volatile costs of food and gas, prices in October rose 4.0% from a year ago — less than the annual increase seen in September, according to Bloomberg data. Monthly core prices rose 0.2%, also lower than the monthly rise in September.

Economists had expected core prices to rise 0.3% from the previous month and 4.1% from a year earlier.

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