US Inflation Report: Consumer Price Index Rises in October 2015

The US Consumer Price Index (CPI) increased by 0.2% in October 2015, after two months of declines.

The figures, along with the strong employment numbers in October, increase speculation that the Federal Reserve will raise interest rates in December.

Prices were pushed up by the rising cost of electricity and a resurgence in petrol prices.

A survey of US fund managers by Bank of America Merrill Lynch found that four-fifths of the managers surveyed expected a rate rise next month.

The so-called core CPI, which strips out food and energy, also rose 0.2% after a similar increase in September.

Medical costs accounted for much of the increase. Medical care prices rose 0.7%, the largest increase since April, and hospital costs increased by 2%.

Although food prices rose only 0.1%, the smallest gain since May, they edged up 0.4% in September and four out of six of the indexes compiled by the big grocery store food groups showed the largest increase since August 2011.

The biggest price falls were in clothing, shoes and new cars.

Over the entire 12 months through to October, the core CPI increased by 1.9%.