The rate of inflation slowed in October.
The US Bureau of Labor Statistics shows a 0.4% increase in the price of goods and services from the previous month. The price of commodities fell by 0.4%.
The same rate at which prices increased month- over-month in September was estimated by the economists. Prices increased by 7.7% in October.
The Fed is determined to tighten monetary policy. The Fed suggested in the last meeting that it could slow the rate of hikes because of the cumulative effect that rate hikes have on inflation.
Employ America, a labor advocacy and research group, saw one print with encouraging signs of slowing down. The Fed would like to see three weak prints to stop the rate of hikes.
The rise in S&P 500 futures came after the release of the inflation data.
The Federal Reserve has increased interest rates four times in a row. Some traders are betting on a 75bps hike when the Fed meets in December.
The cost of daily life is higher. All of it costs more than it did a year ago. The cost of food in grocery stores only increased by 0.4% this month, which is good news for consumers.
Rents and other shelter costs, which make up 40% of coreCPI, continued to rise. Because economists include sky-high pre-existing leases in their calculations, it's not entirely reflection that home prices as slowing and costs of new apartment leases are also decreasing.
Health and dental care, auto repair, and more are seeing prices go up.
Eric Winograd, an economist at AllianceBernstein, told the Financial Times that he is confident inflation will decelerate in coming months due to lower commodity prices, an easing of supply chain pressures and decelerating house prices.
Some of the goods prices have been reduced. Home furnishings prices fell in October.
T. Rowe Price's chief US economist told CNBC that a stronger US dollar should cause deflation.
The central bank is likely to keep a close eye on inflation.
The hike will be a hike even if the size is smaller in December.
Is it possible to guess these Thanksgiving staple from their inflationary trend?
The recent increase in US inflation is not as bad as it seems.
Our theories about high inflation being temporary have turned out to be incorrect.
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