Overview
- Consumer prices rose 0.2% year over year in October, beating expectations for flat growth, and increased 0.2% from September after a 0.1% gain the prior month.
- Producer prices fell 2.1% from a year earlier, a touch better than the expected 2.2% drop, marking a 37th straight monthly decline.
- The uptick in CPI followed two months of declines, while core inflation quickened to 1.2% year over year, the highest in 20 months.
- Food prices fell 2.9% from a year earlier as weak domestic demand, a property slump, and industrial overcapacity continued to weigh on broader price measures.
- Policymakers have favored targeted support with a lower 2025 inflation goal of around 2%, and analysts still see growth on track to meet the roughly 5% annual target.