U.S. Inflation May Have Risen In October After Months Of Easing

After seven months of declining rates, annual inflation in the U.S. may have ticked up in October, indicating that price stabilization might be underway after more than two years of cooling, Christopher Rugaber reported for the Associated Press (AP).

Month-to-month, prices are projected to have increased by 0.2% from September to October, mirroring the rate from the prior month.

Economists surveyed by FactSet estimate that consumer prices likely rose by 2.6% over the previous 12 months, up from 2.4% in September.

Month-to-month, prices are projected to have increased by 0.2% from September to October, mirroring the rate from the prior month. Excluding the more volatile food and energy prices, core inflation is expected to have remained steady at a 3.3% year-over-year increase.

From September to October, core prices likely rose by 0.3% for the third month in a row — a pace that, if sustained, would exceed the Federal Reserve's 2% inflation target.

The potential uptick in inflation could heighten concerns in financial markets about a slowdown in progress toward taming inflation and might make the Fed hesitant to reduce its key interest rate in December or in early 2025.