Higher gasoline and airline fares to give a lift to US CPI in October

Data compiled by the Energy Information Administration indicate that gasoline pump prices have averaged $2.425/gallon nationwide during the first 12 days of October, down 1.5% from the $2.462/gallon mean posted in September. With the summer driving season now over, the BLS' projected seasonal factor anticipates a 4.5% decline in motor fuel costs this month, however. 

The resultant 2.9% increase in seasonally adjusted prices, if sustained through the canvassing period, would add one tick to the headline measure in the October report. Higher airline fares over the October-November span as consumers finalize their year-end travel plans are also expected to provide modest lifts as well over the next two months.