US petrol prices are down, but elevated inflation continues

In its latest report released on Tuesday, the US Department of Labor’s Bureau of Labor Statistics said the Consumer Price Index (CPI) for all items rose by 0.4 percent in October, continuing an inflationary trend since July. The average cost of shelter, as well as food, also rose in October, according to the agency.

The Labor Department’s report was higher than the Federal Reserve Bank of Cleveland, which had forecast the CPI to increase by 0.2 percent, and economists polled by FactSet, who had predicted an increase of 0.3 percent, despite the lowering pressure on energy prices. On Monday, US President Donald Trump said that future military action against Tehran was unlikely.

“Iran militarily is effectively over,” Trump said. “We’re just keeping it the status quo, and we’re doing that really at the behest of countries that are their neighbours.” The average price of a gallon of petrol fell below $4 ($1.06 per litre) for the first time since July, according to the American Automobile Association.