Last month produced the smallest rise in inflation since late 2021, according to a new report compiled by the Labor Department’s Bureau of Labor Statistics.
Overall, the consumer price index was unchanged from September, although up by 3.2% over the same time last year. Simultaneously, notes the report, the BLS shelter index “continued to rise in October, offsetting a decline in the gasoline index, and resulting in the seasonally adjusted index being unchanged over the month.”
The energy index saw a 2.5% decline compared to September, along with a significant 5% drop in the gasoline index, which, notes the BLS report, “more than offset increases in other energy component indexes.”
On the issue of food, Americans saw an increase of 0.3% for food at home in October over the previous month, while food away from home was up a marginal 0.4%.
In its narrative, the BLS report additionally notes that the “indexes which increased in October include rent, owners’ equivalent rent, motor vehicle insurance, medical care, recreation and personal care.”
On the price downside: lodging, used vehicle prices, and airline fares.
The lessening presence of inflation, notes the publication The Street, sparked the strongest rally on Wall Street since last spring as “investors bet that slowing inflation pressures will mark the end of Federal Reserve rate hikes.”
In an interview with US News & World Report, John Sedunov, finance professor at Villanova University, cautioned that rate increases by the Federal Reserve may still be in the offing despite the good news on inflation.
“They may not hike rates again,” remarked Sedunova, “but they are reserving the right to do so.”
By Garry Boulard
