US consumer prices increased 0.3 per cent in October

WASHINGTON — Consumer prices climbed 0.3 per cent in October, with higher prices for gasoline, used autos and housing contributing to the increase.

The Labor Department said Wednesday that this measure of inflation has jumped 2.5 per cent over the past 12 months. Adjusted for rising prices, average weekly wages have improved 0.9 per cent this year. That’s an increase of $8.52 in weekly earnings from October 2017.

The Federal Reserve targets inflation at 2 per cent, just enough to encourage consumer spending and economic growth without leading to price increases that could destabilize the economy. Fed officials are expected at an upcoming meeting in December to raise a key short-term interest rate for the fourth time this year, in hopes of keeping inflation and check and preventing economic growth from overheating in ways that could trigger a downturn.

But inflation could be tamer in future months because oil prices have been trending lower and the value of the dollar has strengthened.

Core inflation, which excludes volatile energy and food costs, rose 0.2 per cent in October. This core figure, which many economists consider to be a better indicator of underlying inflation, has risen 2.1 per cent from a year ago.

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Gas prices increased 3 per cent in October, after having dipped 0.2 per cent in September.

Housing — the single largest component of the index — increased 0.3 per cent in October. Used car and truck prices jumped 2.6 per cent on a monthly basis. But food prices slipped as fruits, vegetables, cereals and bakery products became cheaper.

Josh Boak, The Associated Press