Highlights
Headline inflation eased sharply in October on energy and a few other components. However, the core rate firmed. The consumer price index in October slowed to a 0.1 percent increase after a 0.6 percent spike the prior month. The consensus was for a 0.1 percent gain.

Excluding food and energy, the CPI increased 0.2 percent, following a 0.1 percent rise in September. Analysts projected a 0.2 percent rise.

By major components, energy dipped 0.2 percent after jumping a monthly 4.5 percent in September. Gasoline declined 0.6 percent, following a 7.0 percent surge in September. Food prices gained 0.2 percent versus a 0.1 percent rise in September.

Within the core, the shelter index rose 0.3 percent as the rent index increased 0.4 percent, its largest rise since June 2008. The index for owners' equivalent rent increased 0.2 percent, and the index for lodging away from home advanced 0.5 percent. The apparel index increased 0.7 percent in October after a 0.3 percent increase in September. The index for airline fares rose for the second straight month, increasing 2.4 percent in October. The index for medical care was unchanged in October; this was the first time since July 2010 the index failed to rise. The index for used cars and trucks fell 0.9 percent, its fourth straight decrease. Several indexes posted slight declines in October. The indexes for new vehicles, recreation, household furnishings and operations, and tobacco all fell 0.1 percent.

Year-on-year, overall CPI inflation came in at 2.2 percent versus 2.0 percent in September (seasonally adjusted). The core rate held steady at 2.0 percent. On an unadjusted year-ago basis, the headline CPI was up 2.2 percent, compared to 2.0 percent in September. The core was up 2.0 percent, matching the prior month's pace, not seasonally adjusted.

On the margin, headline inflation improved notably due to energy. The core rate, however, worsened and this could start a quandary for the Fed as unemployment is still quite high.

Market Consensus before announcement
The consumer price index in September increased 0.6 percent, following a 0.6 percent surge the month before. In contrast, excluding food and energy, the CPI rose a mild 0.1 percent after edging up 0.1 percent in August. By major components, energy jumped a monthly 4.5 percent after increasing 5.6 percent in August. Gasoline increased 7.0 percent in September, following a monthly surge of 9.0 percent the month before. Food prices eased to a 0.1 percent gain after rising 0.2 percent in August. Within the core, indexes for shelter, medical care, apparel, and airline fares were among those that increased, while the indexes for used cars and trucks, new vehicles, personal care, and household furnishings and operations all declined.

2012 Release Schedule

Released On: 1/19 2/17 3/16 4/13 5/15 6/14 7/17 8/15 9/14 10/16 11/15 12/14 Release For: Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov