October appears to have been a great month for U.S. housing, U.S. consumer prices, and also Single-family permits. Not so good for Underlying inflation though.
U.S. housing rose to a more than nine-year high last month as builders increased construction of single as well as multifamily homes. Turns out that the housing might contribute to economic growth in the fourth quarter.
Groundbreaking increased with 25.5% to a seasonally adjusted annual pace of 1.32 million units, which by all means is the highest level since August 2007. The percent increase itself was the biggest since July 1982.
Permits for future construction edged up 0.3% in October. Single-family permits climbed 2.7% last month, while building permits for multi-family units dropped 3.3%.
U.S. consumer prices, on the other hand, posted their largest gain in six months in October on rising gasoline costs and rents, suggesting a pickup in inflation that potentially clears the way for the Federal Reserve to raise interest rates in December.
The Labor Department said on Thursday its Consumer Price Index rose 0.4% in October after climbing 0.3% in September.
Underlying inflation, however, remained moderate.
Last month, gasoline prices accelerated 7.0%.
Food prices, as well as medical care costs, remained unchanged – food prices for a fourth straight month, medical care costs – for a second month.