U.S. consumer prices picked up growth pace in October, driven by rising energy prices, indicating that inflation pressure starts to firm.
Consumer Price Index (CPI), a main gauge of inflation, increased at a half-year high pace of 0.4 percent in October on a seasonally adjusted basis, compared to 0.3 percent growth in September, said the Labor Department on Thursday.
On a year-on-year basis, the index increased 1.6 percent, up from September' s 1.5 percent increase.
Food index was unchanged in October, while the energy index grew 3.5 percent in the month, higher than September's 2.9 percent. Excluding the volatile food and energy categories, the so-called core CPI went up 0.1 percent in October on a seasonally adjusted basis, and was up 2.1 percent over the year, slightly lower than September's 2.2 percent increase.
U.S. Federal Reserve chair Janet Yellen said on Thursday that it will be appropriate for the central bank to hike interest rate relatively soon, if the economy continues to move toward full employment and 2 percent inflation targets.
The Fed kept its federal funds rate unchanged in its November meeting amid uncertainty around the U.S. presidential election.
Analysts widely hold that the Fed would possibly hike the rate in its December meeting, as the economy continues to improve.
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