Headline RoundupNovember 11th, 2022

Inflation Slowed in October, but Remains High

Summary from the AllSides News Team

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."

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