Consumer Price Index experiences drop in October

The cost of living didn't increase markedly during August, according to a report from the Bureau of Labor Statistics.

The cost of living didn't increase markedly during August, according to a report from the Bureau of Labor Statistics.

Inflation may be in check for the moment, as the bureau's Consumer Price Index rose 0.1 percent from the previous month. A lack of significant inflation may help more consumers be comfortable with affording larger expenses in the near future.

"Inflation in the U.S. is very subdued," Sal Guatieri, a senior economist at BMO Capital Markets, told Bloomberg. "This is allowing the Fed to strive toward supporting job growth and reducing unemployment."

The food index jumped 0.2 percent during the month, while the shelter index increased by its largest monthly amount in four years, a total of 0.3 percent, the report explained. When unadjusted, the total index level rose 2.2 percent since October 2011.

Market conditions may be positive for the housing market, as real estate records from the National Association of Realtors showed pending home sales improved in September. Overall, the level of pending sales jumped 0.3 percent.



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