Inflation is almost all about your gas prices going up

The latest reading of the consumer price index (CPI) inflation rose slower than economists expected in October.

Excluding the volatile food and energy categories, core CPI rose 0.1% from the month before, less than the 0.2% expected by economists. Including those two categories, consumer good prices rose 0.4% in October, equal to expectations.

Once again, gasoline prices led the index higher according to the BLS. Gas accounted for half of the increase in non-core CPI. The energy index increased by 3.5% for the month, the highest increase since February 2013.

Of the sub-energy indexes, gasoline was up 7.0% from September and fuel oil was up 5.9%.

Compared to October 2015, core CPI rose 2.1%, also lower than the 2.2% economists’ projected.

Surprisingly, the index for medical care — which has been a substantial driver of inflation over the past year — was flat month-over-month and the medical care services ticked up only 0.1% from the month before. Both measures, however, were up significantly form the year before: logging gains of 5% and 4.1% respectively.

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