The cost of living in the U.S. was probably little changed in October, restrained by falling energy prices, economists said before a report today.
The consumer-price index didn’t increase for the first time in four months after advancing 0.3 percent in September, according to the median forecast of 86 economists surveyed by Bloomberg News. Other figures may show manufacturing picked up last month.
Cheaper raw-material costs compared with earlier this year may make it easier for some retailers to hold the line on prices during the holiday shopping season as they compete for consumers coping with stagnating incomes. Less inflation also gives Federal Reserve officials more leeway to take additional measures should the economy falter.
“Inflation pressures should remain relatively subdued,” said Russell Price, a senior economist at Ameriprise Financial Inc. in Detroit. “Over the next several months we’re likely to see some volatility from fuel and petroleum prices. But beyond that, at the core level, prices are going to remain relatively in check.”
At the same time, manufacturing growth is being sustained. Production at the nation’s factories, mines and utilities increased 0.4 percent in October after a 0.2 percent gain the previous month, according to the median estimate in a Bloomberg survey of economists. Projections range from increases of 0.1 percent to 0.8 percent. The Fed’s figures are due at 9:15 a.m.
