By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News, November 10, 2022
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4 percent in October on a seasonally adjusted basis, the same increase as in September, the U.S. Bureau of Labor Statistics reported today.
Over the last 12 months, the all items index increased 7.7 percent before seasonal adjustment. In September, inflation had accelerated to a four-decade high, at 8.2% above the year-earlier level.
The index for shelter contributed over half of the monthly all items increase, with the indexes for gasoline and food also increasing.
The energy index increased 1.8 percent over the month as the gasoline index and the electricity index rose, but the natural gas index decreased.
The food index increased 0.6 percent over the month with the food at home index rising 0.4 percent. The index for all items less food and energy rose 0.3 percent in October, after rising 0.6 percent in September. The indexes for shelter, motor vehicle insurance, recreation, new vehicles, and personal care were among those that increased over the month. Indexes which declined in October included the used cars and trucks, medical care, apparel, and airline fares indexes.
The all items index increased 7.7 percent for the 12 months ending October, this was the smallest 12-month increase since the period ending January 2022. The all items less food and energy index rose 6.3 percent over the last 12 months. The energy index increased 17.6 percent for the 12 months ending October, and the food index increased 10.9 percent over the last year; all of these increases were smaller than for the period ending September.
Read also : How to invest in gold
Today gold prices hit a high of $ 1,758.30 per troy ounce, jumped 2.92%, as lower inflation in October gives the U.S. Federal Reserve room to slow down the pace of rate hikes. Over the past 30 days gold prices are up 5.36%
Gold prices hit $ 1,676 per troy ounce on September 30 and were navigating between $ 1,614 and $ 1,626 per troy ounce on September 28.
The yellow metal has always been a great hedge against inflation because it rises in price when the cost of living standards rises. Gold can store value efficiently, when paper currency loses purchasing power because of inflation.
As a result of a lower than expected inflation for Octobe (7.7%), the dollar index fell sharply on Thursday, the yield on 10-year US government bonds fell below 4%.
The exchange rate of euro/dollar now is : 1.00 euro for 1.02 dollar
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© Copyright 2022 – Swann Collins, investor, writer and consultant in international affairs.