What got more expensive for US consumers in October?
TLT•US consumer prices rose more than expected in October, prompting markets to bet the Federal Reserve would have to raise interest rates aggressively. Prices rose for public transportation, car insurance, medical care, smartphones, televisions and baby formula.
1. Prices rose across categories
Public transportation services rose 2.0% in October from the prior month, led by the largest increase in six years for intracity transportation, including mass transit fees. Motor vehicle insurance costs also increased sharply after easing earlier in the year, while medical care services costs rose by the most in three months.
2. Consumer goods and food
Smartphone prices rose by the most since the Labor Department began tracking them as a separate category in 2020, and increased in four of the last seven months. Television prices recorded one of their biggest increases, while baby food and infant formula prices rose by the most ever. Overall food and grocery prices increased by the most in six months.
