US consumer prices jump 6.2% in October, a 30-year high

US consumer prices jump 6.2% in October, a 30-year high

Inflation rises beyond expectations as the world’s largest economy recovers from the pandemic downturn.

A young customer looks at a Halloween mask at a store in Miami last month. (AP pic)
WASHINGTON:
US consumer prices surged again in October, increasing 6.2% compared to the same month last year as costs rose for a range of items, the government said today.

It was the largest annual jump in the consumer price index (CPI) since November 1990 and driven by increases in gasoline, automobile and food prices, according to the Labour Department data.

CPI spiked 0.9% compared to September, more than double the increase in the prior month and above analyst expectations.

The data underscored the continued challenge posed by inflation as the world’s largest economy recovers from the pandemic downturn last year and struggles with scarce labour and snarled supply chains that have driven prices higher.

Gasoline prices rose 6.1% last month, and used cars and trucks, which have seen a big spike over the past year, climbed 2.5% after declining in the prior two months. Fuel oil jumped by a massive 12.3%.

Prices for food at home, such as groceries, rose 1%, while food away from home, which are meals at restaurants, increased 0.8%.

Rent prices rose with a 0.5% increase in the shelter category.

Food and energy prices are volatile, but even with those goods excluded, CPI climbed 0.6% last month compared to the 0.2% increase in September.

Compared to October 2020, “core” CPI increased 4.6%, its biggest 12-month rise since August 1991, the report said.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.