US inflation gauge ticks higher with price pressures still stubborn

Washington (AP) The most recent indication that inflation’s two-year-long steady fall has paused is the acceleration of consumer price rises last month.

The Commerce Department reported on Wednesday that consumer prices increased 2.3% in October compared to the same month last year, according to the Federal Reserve’s preferred inflation indicator. Although it is still only slightly above the Fed’s 2% target, that represents an increase from only 2.1% in September.

However, when the erratic food and energy categories are taken out of the equation, so-called core prices also increased, rising 2.8% last month compared to a year earlier and 2.7% in September. Since core prices usually give a better indication of the direction of inflation, economists keep a careful eye on them.

According to the Fed’s favored metric, inflation has dropped significantly after peaking at 7% in the middle of 2022. However, since February, annual core inflation has been stagnant at 2.8%. Service costs, such as rent for apartments, meals at restaurants, and home and auto insurance, have continued to rise.

The study released on Wednesday also emphasized that Americans’ salaries and spending stayed strong, which is a major factor in the economy’s continued growth this year in spite of widespread concerns about a recession. While consumer expenditure increased by a strong 0.4% last month, incomes expanded by 0.6% from September to October, which was quicker than economists had predicted.

The Associated Press, 2024. All rights reserved. All rights reserved. It is prohibited to publish, broadcast, rewrite, or redistribute this content without authorization.

Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!

See also  The Latest: More than a dozen races left to be called to determine control of Congress


Leave a Reply

Your email address will not be published. Required fields are marked *