Energy prices play large role as CPI rises in October
On a seasonally-adjusted basis, overall consumer prices rose 0.9 percent in October, with the Bureau of Labor Statistics reporting the overall consumer price index (CPI) grew 6.2 percent over the 12-month period. In a new Macro Data Flash report, NAFCU Chief Economist and Vice President of Research Curt Long noted that most of the inflation was largely driven by energy prices.
“After three months of more moderate price growth, the October figure matches June for the highest inflation print of the year,” said Long.
Energy prices rose 4.8 percent during the month, following a 1.3 percent increase in September. From a year ago, energy prices were up 30 percent. Additionally, food prices climbed 0.9 percent in October and are up 5.3 percent compared to this time last year.
“Markets reacted to the news immediately with a bounce in short-term yields as markets anticipate Fed action in the first half of 2022,” Long added.
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