U.S. CPI increases on core strength

In the United States, the CPI was moving in downward trend in last two months, changed its direction in October.

The headline CPI rose by 0.2% m/m in seasonally adjusted terms and the core CPI also increased by same rate. Likewise, the core service is increasing at a pace of 0.3%m/m. 

"We continue to believe that the underlying trend in consumer prices is benign, especially for services inflation. We expect core goods prices to remain a drag, driven by the renewed decline in commodity prices and the recent surge in the value of the dollar, but their impact on overall CPI is likely to be transitory", states Barclays.