Consumer prices in US keep rising

US consumer prices increased by the most in nine months in October amid gains in the cost of fuel and rents, pointing to steadily rising inflation that will likely keep the Federal Reserve on track to raise interest rates again in December.

The labour department said on Wednesday its consumer price index (CPI) rose 0.3% in October after edging up 0.1% in September. In the 12 months through October, the CPI increased 2.5%, picking up from September’s 2.3% rise.

Fuel prices rose 3%, accounting for more than one-third of the increase in the CPI.

Excluding the volatile food and energy components, CPI climbed 0.2%. So-called core CPI had gained 0.1% for two straight months. In the 12 months through October, the core CPI increased 2.1% after advancing 2.2% in September.

Economists polled by Reuters had forecast the CPI climbing 0.3% and the core CPI gaining 0.2% in October.

The personal consumption expenditure index has increased 2% for five straight months.

US treasury yields briefly declined before turning higher after the data, while the dollar held its losses against a basket of currencies. US stock index futures were trading higher.

The US central bank left rates unchanged last Thursday, but is expected to increase borrowing costs in December for a fourth time in 2018.