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U.S. Inflation Remained Muted in October Despite Solid Economy

  • Core gauge gets boost from used cars; several categories soft
  • Inflation excluding food and energy slowed to 2.1% in October
Shoppers walk through the Menlo Park Mall in Edison, New Jersey.
Shoppers walk through the Menlo Park Mall in Edison, New Jersey.Photographer: Michael Nagle/Bloomberg
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U.S. inflation showed little sign of breaking out in October despite strength in the economy and wages, likely keeping the Federal Reserve on its path of gradual interest-rate increases.

Excluding food and energy, the core consumer-price index rose 2.1 percent from a year earlier, according to a Labor Department report Wednesday, slightly short of the median estimate of economists for a 2.2 percent increase, which was also the gain in September. It was up 0.2 percent from the prior month, the fastest gain in three months and in line with projections.