- US inflation edges higher in October
- Consumer prices increased by 2.6% over the past year, up from 2.4% in September
- Rise driven largely by higher housing and food costs
US inflation edges higher in October
Inflation in the US rose slightly in October, halting recent progress in stabilising prices. According to the Labor Department, consumer prices increased by 2.6% over the past year, up from 2.4% in September, driven largely by higher housing and food costs.
The Federal Reserve, which aims to bring inflation closer to its 2% target, has been gradually cutting interest rates after significant progress since mid-2022, when inflation peaked at over 9%. However, the recent uptick raises questions about the central bank’s next moves, with some analysts suggesting rate cuts may not go as deep as previously anticipated.
The Labor Department reported housing costs rising 4.9% in the last year. Other notable increases included car insurance, up 14%, as well as medical care and education. Meanwhile, petrol prices have fallen 12% over the same period, offering some relief to consumers.
Analysts like Josh Jamner of ClearBridge Investments have noted that while inflation has come down significantly, the “last mile” toward achieving stability is proving challenging. Market reactions to the October data were muted, as the numbers aligned with expectations.
This inflation data comes as President-elect Donald Trump prepares to take office, with plans for tax cuts, tariffs, and immigration reforms that could add further economic uncertainty.