October CPI up 0.2%, boosting rate hike expectations

Washington

US CONSUMER prices increased in October after two straight months of declines as the cost of petrol and a range of other goods rose, a tentative sign that the drag on inflation from a strong dollar and lower oil prices was starting to ease.

The modest rise in inflation last month could offer more support to expectations that the Federal Reserve will raise interest rates next month. The Labor Department said on Tuesday that its consumer price index increased 0.2 per cent last month, reversing September's 0.2 per cent drop.