The October Consumer Price Index statistics are in. The index jumped more than expected, but "core" measures held more-or-less steady.
The numbers certainly do not seem to have left much of an impression -- or at least not much of a bad one -- on the markets. This take, from TheStreet.com, is pretty representative of the reaction.
Consumer prices rose more than expected in October, but the increases are not as worrisome as those seen in the producer price index released a day ago.
The consumer price index rose 0.6%, vs. 0.2% in September, the government said Wednesday. Economists expected a 0.4% increase. Excluding food and energy costs, prices rose 0.2%, vs. 0.3% a month ago and a consensus forecast of 0.1%...
The unexpected jump in inflation may influence the Fed's thinking on interest rate policy in the months ahead, after several months of moderating, if not minimal, inflation. Prior to the CPI and PPI data, economists were divided over whether the central bank would raise interest rates a quarter of a percentage point for the fifth time since late June when its meets in December. The federal funds rate is currently at 2%.
Price developments in October, however, may not be a good indicator of overall trends. Crude oil prices spiked to a record high of $55.17 during the month, and some of the agricultural sector was still recovering from the wave of hurricanes in September. Inflation indicators jumped for several months earlier this year, then moderated through the summer.