Overall consumer prices rose 1.8% over the past year, just below the Federal Reserve’s 2% target. Core prices increased 2.3%. Despite last month’s climb, gasoline prices are down 7.3% since October 2018.
Food prices rose 0.2% from September to October, biggest increase since May. New car prices fell 0.2%, fourth straight monthly drop. But used vehicle prices rose 1.3%, most since June. Relatively tame inflation has allowed the Fed to cut short-term U.S. interest rates three times this year to support an American economy slowed by trade disputes with China and other U.S. trading partners.