Consumer prices in the US rose by 3.2 percent compared to the same month last year, according to the US Department of Labor. This represents a significant slowdown from the 3.7 percent rate recorded in September. Economists had expected a slightly less pronounced slowdown to 3.3 percent on average.
On a month-on-month basis, prices remained stable, with analysts forecasting a 0.1 percent increase.
The core inflation rate, which excludes volatile components such as energy and food, also decreased slightly from 4.1 percent to 4.0 percent. Economists had expected the rate to remain unchanged. The core rate is closely monitored by the US Federal Reserve as it is believed to provide a better reflection of the overall price trend, excluding the components that are prone to fluctuations.
These figures are of significance to the Fed's monetary policy, as the central bank has refrained from further interest rate hikes in recent months. However, US policymakers have not ruled out future increases.
Key Takeaways:
- US consumer prices rose by 3.2 percent compared to the same month last year
- On a month-on-month basis, prices remained stable
- The core inflation rate decreased slightly from 4.1 percent to 4.0 percent