Annual Inflation Rate Hits 2.6% in October

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Inflation is Again on the Incline

Inflation showed a slight uptick in October, with the annual inflation rate reaching 2.6%, according to the Bureau of Labor Statistics. This was in line with Wall Street’s expectations and marked a 0.2% increase from the previous month.

The Consumer Price Index (CPI), which tracks the cost of everyday goods and services, rose by 0.2% in October. When you remove the volatile food and energy costs, the core CPI saw a bigger jump of 0.3%, bringing the annual rate to 3.3%. Both of these numbers matched what experts had forecasted.

Energy prices were flat for the month after a recent decline, while food costs saw a small increase of 0.2%. Over the past year, energy prices have dropped 4.9%, while food prices have gone up by 2.1%.

A major driver behind the inflation was shelter costs. Prices for housing increased by 0.4% in October, twice the rate of September’s increase. Over the past year, shelter prices have risen by 4.9%, making up over half of the overall inflation increase.

Other price changes included used car prices climbing 2.7%, airline fares rising by 3.2%, and a significant drop in egg prices by 6.4%—though they’re still 30.4% higher than last year.

In good news for workers, inflation-adjusted average hourly earnings rose by 0.1% for the month and 1.4% year-over-year, according to a separate report.

Following the release, stock market futures saw a slight boost, and Treasury yields dropped. Traders are now raising the chances that the Federal Reserve could cut its key interest rate by another quarter point in December. However, the future remains uncertain as new political and economic changes loom ahead.