US core CPI dips unexpectedly in October

One of the most widely-followed measures of the cost of living Stateside undershort forecasts slightly in October.

The headline consumer price index advanced 0.4% month-on-month in October and was up by 1.6% year-on-year, versus a rise of 1.5% in September, according to the Bureau of Labor Statistics.

That was in-line with economists´ forecasts.

However, the so-called 'core' rate of inflation, which strips out the change in prices for the more volatile categories, such as food and energy, advanced by only 0.1% on the month and dipped to 2.1% when compared to the same month of 2015.

In September core prices advanced at a 2.25 clip year-on-year.

Economists had expected a rise of 0.2% on the month and a gain of 2.2% year-on-year.

The chief factors behind the downside surprise were a 0.1% month-on-month drop in the prices for used cars and trucks and a 0.2% decline in the prices of transport sevrices.