US Labor Department: October headline CPI rose 0.4% MoM, down from September’s
0.6% but above consensus 0.3%. Core CPI rose 0.3% MoM, unchanged from September
and also above forecasts. Gasoline prices did not decline materially; AAA
reports average pump price $4.32/gal in October versus $4.34 in September,
roughly 34% above pre‑conflict levels. Economists had expected gasoline would
not add much to October’s headline print given the lack of a sharp drop. The key
market question is the extent to which higher energy costs will continue to
filter through the economy and push broader inflation higher. Energy‑sensitive
sectors are already showing strain and large fuel purchasers are passing on
costs; since energy jumped after the February outbreak of hostilities involving
Iran, some economists warn wider pass‑through may still be ahead.
