00:00No surprises here. The headline CPI month-over-month increase, six-tenths of a percent.
00:05As forecast after a nine-tenths move last month, the core CPI year on a month-over-month basis is
00:13up four-tenths. That is stronger than was expected. So for the year, we have CPI up 3.8%
00:20and the core up 2.8%. That's the highest CPI for year-over-year since 2022, I believe.
00:30And it is also more than anticipated. It's a jump of half a percentage point.
00:36Where's that upside surprise come from on core?
00:38Well, right now, it looks like it's coming from a couple of different things.
00:42Apparel prices up six-tenths of a percent and the owner's equivalent rent up half a percent.
00:49Now, Michael Gapin could explain more of this to you, but basically that's a statistical quirk
00:53because we didn't get an October read on inflation because of the government shutdown.
00:58So we've got basically a catch-up right now. Motor vehicle insurance contained, that's been one
01:03that's been rising a lot, 0.1% this time. But airline fares up 2.8%, a little more than
01:10anticipated. So we've got a little broader inflation than was thought. In terms of the
01:19headline rate that includes food and gasoline, food prices up half a percent, food at home up
01:25seven-tenths of a percent, and gasoline prices up 5.4%. Nobody's going to be surprised at that number.
Comments