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Thursday, December 01, 2022

US inflation rises lower than expected in October

US inflation rises lower than expected in October

US inflation registered a slight decline in its fourth month, located in october 7.7% year-on-year, down five tenths from 8.2% in September And forecast an 8 percent reading, below analysts’ forecasts.

In monthly terms, the measure of prices rose by four tenths but it was also less than 0.5% expected, which encourages the expectation that The Federal Reserve moderates the next interest rate hike.

According to data released today by the Bureau of Labor Statistics of the US Department of Labor, Core inflation—which excludes food and energy—also slowed to 6.3%three tenths less than in September and Two tenths less than economists’ 6.5% forecast.

energy

“The housing index contributed more than half of the monthly increase for all commodities, with gasoline and food prices also rising. Energy rose 1.8% during the month. The Gasoline Index and Electricity Index increased, but the Natural Gas Index decreased.The report says.

Energy cost growth slows to 17.6% year-on-year in October From 19.8% in the previous month. In turn, food prices rose 10.9% annually, three tenths less than in September.

Data positive for Fed’s aspirations to slow rate hike of interest before the end of 2022. The central bank has called for a “reassuring” fall in inflation to slow rate hikes and this price data confirms a trend. The fall in the general CPI is the fourth in a row and the core is also slowing against forecasts that it will continue to climb this month.

recession

This was the first time since February that the annual growth in the CPI was below 8%., The annual CPI reached 9.1% in June, the biggest advance since November 1981. Annual inflation is slowing down Since the large increase from the previous year disappears from the calculation.

Last week, the Federal Reserve raised interest rates for the fourth straight 75 basis points and said its fight to bring inflation down to the US central bank’s 2% target would require further hikes in interest costs.

However, he noted that may be approaching a tipping point what has it become In the fastest cycle of rate increases since the 1980s.

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