US consumer prices unchanged in October, lowest in 5 months

U.S. consumer prices remained unchanged in October, according to the the Labor Department. PHOTO CREDIT: Wilfredo Lee

WASHINGTON — U.S. consumer prices were unchanged in October, the lowest reading in five months and an indication that a price spike over the summer is beginning to fade as coronavirus cases begin to spread.

The Labor Department reported today that the flat reading in October followed a gain of 0.2% in September. Core inflation, which excludes volatile food and energy costs, also showed no changed in October, another indication that inflation remains well-behaved.

Over the past 12 months, overall inflation is up a moderate 1.2% while core inflation is up 1.6%. Both readings are well below the Federal Reserve’s 2% target.

Used car prices, which had been surging, retreated slightly in October, dropping 0.1% after a 6.7% jump n September which had been the largest one-month gain in 51 years.