Core CPI Up 0.2%

Core CPI increased 0.2% in October, in line with consensus estimates of 0.2%, CPI also increased at 0.2%, above consensus estimates of 0%. This marks the largest increase in the core numbers in more than six months. Not surprisingly, Housing ticked in at a 0.9% increase, a jump not seen in some time.

Consumer prices up unexpectedly

U.S. consumer prices unexpectedly rose 0.2 percent in October despite a dip in energy prices as the cost of housing notched the largest increase in nearly five years, a government report showed on Wednesday.

Excluding food and energy costs, prices increased 0.2 percent, the Labor Department said, matching Wall Street expectations.

Economists had expected overall consumer prices to hold flat in October.

For those interested in drilling down into a more detailed report of the CPI data, you can find that here:

Consumer Price Index: October 2005

CPI numbers were up despite energy prices showing the first decline in 4 months and a rather significant decline in transportation. Just more evidence that the Fed must continue to raise rates and remove policy accomodation. Look for further increases out of the FOMC Policy Meetings in December, January, and March.

Caveat Emptor,
Grim