Wednesday, November 18, 2015
Signs of Inflation
After it had fallen slightly for two months in a row, the consumer price index rose by 0.2 percent in October, according to figures released by the Labor Department yesterday. Even excluding the normally volatile food and energy categories, so-called core prices also grew 0.2 percent for the month.
Those core prices have risen 1.9 percent on the year, led by increases in the cost of shelter and medical care. For the past 12 months, overall prices have risen just 0.2 percent, tamped down by falling energy prices.
But energy prices have been hugely deflationary. Overall, energy prices have fallen by 17.1 percent in the past year. On the other hand, energy prices actually rose by 0.3 percent in October, and gas rose by 0.4 percent.