Inflation remained historically high in October, but there were signs it was slowing.
Price increases moderated in the United States last month, a sign the inflation pressures in this country might be easing as the economy slows and consumers grow more cautious.
The Associated Press reported that consumer inflation reached 7.7% in October from a year earlier and 0.4% from September, the government said Thursday. The year-over-year increase, a slowdown from 8.2% in September, was the smallest rise since January, the AP reported.
The numbers were lower than economists had expected.
Helping drive the inflation slowdown from September to October, according to the AP report, were used car prices, which dropped for a fourth straight month. Also down were the prices of clothing and medical care. Food price increases slowed. By contrast, energy prices rebounded in October after having declined in August and September. “We expect this to mark the start of a much longer disinflationary trend that we think will convince the Fed to halt its (hikes) early next year,” Paul Ashworth, chief North American economist at Capital Economics, a consulting firm, told the AP. “With supply shortages normalizing, deflationary pressure is now finally showing up.” https://c1556bd484829cecea960691b7af64cd.safeframe.googlesyndication.com/safeframe/1-0-39/html/container.html