US inflation rise increases likelihood of Federal Reserve interest rate hike
by Associated Press from on (#TWD9)
- Consumer price index rises 0.2% but inflation is nearer 2%
- October numbers likely to encourage Fed about strength of domestic economy
The costs of food, gasoline, shelter and medical care rose last month, yet inflation continues to run at low levels ahead of a Federal Reserve meeting in December to consider raising short-term interest rates for the first time in nearly a decade.
The consumer price index rose 0.2% in October after falling the previous two months, the Labor Department said on Tuesday. Prices at the pump advanced 0.4% last month, but gas costs have plunged 27.8% from a year ago.
Related: Janet Yellen says December interest rate hike is still on the table
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