Washington DC November 13 2024: U.S. consumer prices increased as expected in October, and progress towards low inflation has slowed since mid-year, which could result in fewer interest rate cuts from the Federal Reserve next year.
The consumer price index rose 0.2% for the fourth straight month, the Labor Department’s Bureau of Labor Statistics said on Wednesday. In the 12 months through October, the CPI advanced 2.6% after climbing 2.4% in September.
The up-tick in annual inflation also reflects last year’s low reading dropping out of the calculation.
Frustration over inflation helped to propel Republican Donald Trump to victory in last week’s presidential election, defeating Democratic Party candidate and Vice President Kamala Harris.
Economists are, however, forecasting higher inflation next year if Trump forges ahead with his economic policies, including tax cuts and higher tariffs on imported goods. He has also vowed mass deportations of undocumented immigrants, which economists say will shrink labor supply, raising costs for businesses that are then passed on to consumers.
