WASHINGTON: US consumer inflation fell more than expected last month, government data showed on Tuesday, providing some welcome news for policymakers looking to control price rises without hurting the economy.
In its statement, the Ministry of Labor said that the consumer price index (CPI) inflation indicator increased by 3.2 percent in the 12 months until October, decreasing from 3.7 percent in the previous month.
Inflation remained unchanged on a monthly basis in October compared to September, and a sharp monthly decline was recorded in energy prices.
Ministry of Finance estimates October inflation as 27%-29%
Both the annual and monthly figures were below the average expectations of economists surveyed by MarketWatch.
The Labor Department said a decline in the gasoline index was responsible for the slowdown in prices, but that it was partially offset by a continued increase in the housing index.
While declining inflation is good news for consumers, the current inflation rate, as measured by a range of indicators, remains firmly above the Federal Reserve’s long-term target of two percent.
The US central bank recently kept its key lending rate at a 22-year high for the second meeting in a row, leading some analysts and traders to predict that tightening monetary policy is over.
But since then, some policymakers, including Fed Chairman Jerome Powell, have indicated they are ready to raise rates again if necessary to keep price increases firmly on target.
The Labor Department said volatile food and energy segments, called “core inflation,” cooled to 4.0 percent last month, the smallest 12-month change since the period ending September 2021.
news source (www.brecorder.com)