What got more expensive for US consumers in October?
SPY•US consumer prices rose more than expected in October. Public transportation, car insurance, medical care, smartphones, televisions, and baby food and infant formula all saw notable price increases.
1. Price increases across categories
Public transportation services rose 2.0% in October from the month before, led by the largest increase in six years for intracity transportation. Motor vehicle insurance costs increased sharply, while medical care services costs rose by the most in three months.
2. Consumer goods and food
Smartphone prices rose by the most ever since the Labor Department began tracking them as an individual category in 2020. Television prices saw one of their biggest increases on record, and baby food and infant formula prices rose by the most ever as food and grocery prices increased by the most in six months.
3. Market reaction
The larger-than-expected increase in consumer prices prompted financial markets to increase bets that the Federal Reserve would have to respond aggressively with interest rate increases to rein in inflation.
