Shopper worth index rises in October for first time in three months

It has suggested weight holding down inflation from the strong USA dollar and the lower prices of oil was beginning to ease.

Consumer prices rose last month for the first time since July, an inflation signal that could help push the Federal Reserve to increase a key interest rate.

In October 2015 the CPI grew by 0.1% against rise of 0.3% in September, fall of 0.1% in August, 0.7% in July, 1.1% in June, 0.6% in May, 0.2% in April, rise of 0.9% in March and 4% in February.

The ONS said that climbing prices in clothing, footwear and recreational goods were offset by dips in the cost of university tuition fees, food, alcohol and tobacco, resulting in no change to the overall rate of inflation from last month.

“While low inflation need not rule out a hike in the fed funds rate, at the very least it should ensure subsequent rate hikes come at a very gradual rate”, said Richard Moody, chief economist at Regions Financial.

He added: ‘Consumer price inflation could well start inching up year-on-year from November’. For the past decade the annualized inflation rate has been 1.9%. The core CPI reading, which excludes food and energy, was up 0.2% on the monthly reading. Job growth surged in October by the most this year, while hourly earnings rose from a year ago by the most since 2009.

Not the stuff that one would generally tighten into but they appear determined. Fuel oil dropped -1.1% for the month, continuing it’s slide. Graphed below is the overall CPI energy index. Over the past year, prices are up 0.2%. Personal loans are also likely to remain incredibly cheap, while we continue to see record deals offered on 0% purchase credit cards and 0% balance transfer credit cards. Graphed below is the rent price index.

Food prices increased 0.1% for the month, which is much less than September’s 0.4% increase. Citigroup climbed 0.6% while JPMorgan was flat.

In forecasts published this month, the BOE said inflation is likely to reach its goal in late 2017 and accelerate to 2.2 percent a year later. Estimates for total CPI ranged from a 0.1 percent decline to a 0.3 percent gain.

Graphed below are groceries, otherwise known as the food at home index.

Hospital costs increased 2.0 percent in October and airline fares rose 1.5 percent, ending a string of three consecutive declines.

Below is a graph of the medical commodities index, which is mostly prescription drug prices. Under this heading, the CPI for white bread was 324.1, down 0.5% from September but up 1.7% from October 2014.

Meanwhile, services prices rose 2.4% vs. a year earlier, the most this year. Gasoline prices in Utah now average $2.23 per gallon.