Led by energy prices, U.S. inflation increased 0.3% for the second month in a row in October.
Core prices -- which exclude volatile food and energy costs -- increased 0.2% in October for the fifth month in a row, the Labor Department said Thursday. The increases matched expectations.
The core rate was boosted by a 0.5% gain in rent costs....From another corner of the Dow Jones empire, the WSJ's MarketBeat blog brings us:
Qing Wang of Morgan Stanley writes that China could soon be facing out-of-cntrol inflation. “What concerns us is not only the current headline CPI reading, but more importantly, the runaway money supply growth in recent months,” they write. “Inflation is ultimately a monetary phenomenon: no matter how much surplus labor China still has and how fast the underlying labor productivity grows, which are the two secular factors underpinning our relatively benign inflation outlook, China is bound to have high inflation if money supply is out of control.”
