Inflation likely eased last month thanks to cheaper gas but underlying price pressures may stay high
Inflation in the United States likely remained high last month, a trend that if sustained could raise concerns at the Federal Reserve, which is considering whether to raise interest rates again
WASHINGTON (AP) — Inflation in the United States likely remained high last month, a trend that if sustained could raise concerns at the Federal Reserve, which is considering whether to raise interest rates again. Still, cheaper gas might have slowed a broad measure of overall inflation in October.
Excluding volatile food and energy prices, core inflation is forecast to have risen 0.3% from September to October for a third straight month, according to economists surveyed by FactSet. Monthly increases at that pace would be too high to meet the Fed’s 2% annual inflation target. Economists pay particular attention to core prices, which are believed to provide a good signal of inflation’s likely future path.
Tuesday's report from the Labor Department is expected to show that overall consumer prices ticked up just 0.1% from September to October, much lower than the 0.4% and 0.6% increases in August and September. A 2% monthly drop in energy prices was likely the main reason for the smaller rise.
