The U.S. central bank left interest rates unchanged last Thursday, but is expected to increase borrowing costs in December for a fourth time this year. In its statement after last week’s policy meeting, the Fed noted that annual inflation measures “remain near 2 percent.”
Last month, gasoline prices rebounded 3.0 percent, accounting for more than one-third of the increase in the CPI, after slipping 0.2 percent in September.
Food prices fell 0.1 percent after being unchanged in September. Food consumed at home declined for a second straight month in October. Food prices were held down by cheaper bread, cereals, pork, dairy products, fruits and vegetables.
Owners’ equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home, rose 0.3 percent in October after advancing 0.2 percent in the prior month. The rent index gained 0.2 percent.
Healthcare costs increased 0.2 percent last month after a similar gain in September. Apparel prices edged up 0.1 percent after jumping 0.9 percent in September.
There were also increases in the costs of household furnishings and used motor vehicle and trucks as well as motor vehicle insurance and tobacco.
But prices for new motor vehicles dropped 0.2 percent last month. Communications costs fell as did prices for recreation and personal care products.