Inflation Slowed in October, but Remains High
Inflation eased in October, but the Consumer Price Index (CPI) remained near a multi-decade high, climbing 0.4% from September and 7.7% in the year ended Oct. 31, according to the Department of Labor.
Key Quotes: “Today’s CPI report shows inflation is moving in the right direction,” said Eric Merlis, managing director, co-head of global markets at Citizens. “The report provides ammunition for the Fed to begin pricing in sub 75-basis-point tightenings. This will be a welcome development for the Fed.”
For Context: Economists expected a 0.6% rise in month-over-month inflation and a 7.9% annual jump. Inflation has surged as consumer demand and the U.S. economy continues to recover from the COVID-19 pandemic. Higher prices have been the result of supply chain issues, government stimulus, low interest rates, and global oil market instability. The U.S. stock market responded to the report with its biggest rally since 2020. Gas prices (4.4% monthly increase) and food costs (0.6%) continued their rise in October.
How the Media Covered it: Sources across the spectrum painted the report as concerning, but better than expected. CNN Business said the data shows "that the Federal Reserve still has far to go in its battle to tame inflation." Fox Business said "millions of U.S. households and small businesses" were squeezed as "inflation continued to run near a multi-decade high."
Featured Coverage of this Story
From the CenterOctober Inflation Report Shows Consumer Prices Rose 7.7% From Year Earlier
Inflation eased in October as underlying price increases excluding energy and food slowed from a four-decade high.
The Labor Department on Thursday said that its consumer-price index increased 7.7% in October from the same month a year ago, the smallest 12-month increase since January 2022. The reading was down from 8.2% in September. June’s 9.1% inflation rate was the highest in four decades.
On a monthly basis, the CPI rose 0.4% in October from September, the same pace as the previous month. The CPI measures what consumers pay for goods and services....
From the RightInflation holds grip on US economy in October as prices remain stubbornly high
Inflation cooled more than expected in October, but consumer prices remained near a multi-decade high, continuing to squeeze millions of U.S. households and small businesses.
The Labor Department said Thursday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 0.4% in October from the previous month. Prices climbed 7.7% on an annual basis.
Those figures were both lower than the 8% headline figure and 0.5% monthly increase forecast by Refinitiv economists, a potentially reassuring sign for the Federal Reserve...
From the LeftInflation cools much more than expected in October
Consumer prices rose 7.7% for the year ending in October, according to data released Thursday. The report was better than expected and surprised investors, with markets surging on the news. But the Federal Reserve still has far to go in its battle to tame inflation.
The Consumer Price Index, which measures the changes in prices for a variety of consumer goods and services, was lower than the 8.2% reading in September.
“Today’s CPI report shows inflation is moving in the right direction,” said Eric Merlis, managing director, co-head of global markets at...
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