Stocks surge as inflation falls more than expected

US consumer price inflation cooled down in October after rising for the last two months. The moderation in inflation was even more than expected, sending US stocks sharply higher and providing a touch more solace to Americans who have dealt with painfully high prices the past two years.

The Consumer Price Index rose 3.2% for the 12 months that ended in October, down from 3.7% in September, according to Bureau of Labor Statistics data released Tuesday.

On a monthly basis, prices were unchanged for the first time since July 2022. A month before, they shot up 0.4% as gas and rent costs added upward pressure.