U.S. CPI rises on surging gas prices

Surging gasoline prices caused U.S. consumer prices to rise last month at the fastest pace since March.

The Labor Department said Wednesday that its consumer price index rose 0.4% in October after a flat reading in September. Gasoline prices, after drops in August and September, jumped 3.7% last month. Excluding volatile energy and food prices, so-called core consumer inflation rose just 0.2% in October.

Overall consumer prices rose 1.8% over the past year, just below the Federal Reserve’s 2% target. Core prices increased 2.3%.

Despite last month’s climb, gasoline prices are down 7.3% since October 2018.

Food prices rose 0.2% from September to October, biggest increase since May. New car prices fell 0.2%, fourth straight monthly drop. But used vehicle prices rose 1.3%, most since June.

Relatively tame inflation has allowed the Fed to cut short-term U.S. interest rates three times this year to support an American economy slowed by trade disputes with China and other U.S. trading partners.

Paul Wiseman, The Associated Press

Paul Wiseman is a reporter with The Associated Press,  an American not-for-profit news agency headquartered in New York City and founded in 1846.