U.S. consumer inflation in October rose 3.2 percent from a year ago, down from 3.7 percent in the previous month, as inflation cooled amid high interest rates, the U.S. Labor Department reported Tuesday.
The Consumer Price Index (CPI) was unchanged in October on a seasonally adjusted basis, after ticking up 0.4 percent in September, according to the department’s Bureau of Labor Statistics.
The index for shelter 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 report showed.
The latest inflation report showed that the so-called core CPI, which excludes food and energy, edged up 0.2 percent in October, after rising 0.3 percent in September.
Core inflation in October rose 4.0 percent over the last 12 months, its smallest 12-month change since the period ending in September 2021. Core inflation in September increased 4.1 percent from a year ago.
Indexes which increased in October include rent, owners’ equivalent rent, motor vehicle insurance, medical care, recreation, and personal care. The indexes for lodging away from home, used cars and trucks, communication, and airline fares were among those that decreased over the month.
Inflation in the country has cooled a lot from a year ago due to the Federal Reserve’s aggressive rate hikes from near-zero to over 5 percent. At its peak in June 2022, the CPI surged 9.1 percent year on year.
However, inflation remains far above the Fed’s long-term target of 2 percent, indicating that interest rates could stay high for months.
