United States Inflation in October 2023
The United States inflation in October 2023 slowed down, signaling that the Federal Reserve’s interest rate increases continue to cool down the surges, mainly as a response to reduced consumption after several months of interest rate hikes.
The report on this Tuesday, November 14, from the Department of Labor showed that lower gasoline prices helped cool down overall inflation.
In this regard, U.S. inflation in October remained unchanged from September to the following month, below the 0.4% jump from the previous month.
Compared to a year ago, consumer prices increased by 3.2% in October, down from September’s 3.7%.
Another significant indicator of U.S. inflation in October is that both the food and energy sectors maintained their prices.
Excluding the volatile prices of food and energy, the so-called core prices also unexpectedly weakened.
They increased by only 0.2% from September to October, slightly below the pace of the previous two months.
Economists closely monitor core prices, believed to provide a good signal of the future trajectory of inflation. Year over year, core prices increased by 4% in October, down from September’s 4.1%.
United States Inflation in October 2023
The U.S. inflation data for October arrives as Federal Reserve officials, led by Chairman Jerome Powell, are considering whether their benchmark interest rate is high enough to quell inflation or if they need to impose another rate hike in the coming months.
Powell said last week that Fed officials were “not sure” if rates were high enough to control inflation.
The Federal Reserve has raised its benchmark interest rate 11 times in the last year and a half, to around 5.4%, the highest level in 22 years.
The rate hikes have had some impact: year-over-year inflation has fallen from a peak of 9.1% in June 2022, the highest level in four decades, to 3.7% in September.
Despite these signs of improvement, certain surveys show that citizens have doubts because products they regularly purchase (milk, meat, bread, and other foods) are still much higher than they were three years ago.
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