U.S. Consumer Price Growth Slows In Line With Estimates In October
Consumer price growth in the U.S. slowed in line with economist estimates in the month of October, according to closely watched inflation readings released by the Commerce Department on Thursday.
The report said the annual rate of consumer price growth decelerated to 3.0 percent in October from 3.4 percent in September. The slowdown matched expectations.
Core consumer price growth also slowed in line with estimates, slipping to 3.5 percent in October from 3.7 percent in September. Core consumer prices exclude food and energy prices.
On a monthly basis, consumer prices were unchanged in October after climbing by 0.4 percent in September, while core consumer prices crept up by 0.2 percent after rising by 0.3 percent in the previous month.
“Inflation took another step toward returning to its pre-pandemic trends,” said Nationwide Financial Markets Economist Oren Klachkin. “There is more disinflation in the pipeline and we expect inflation to continue to cool in 2024.”
“Monetary policy isn’t broken, it just works with long lags,” he added. “However, Fed officials won’t hit their two percent inflation goal for quite some time.”
The inflation readings, which are said to be preferred by the Federal Reserve, were included in the Commerce Department’s report on personal income and spending during the month.
The report said personal income edged up by 0.2 percent in October after climbing by 0.4 percent in September. The uptick came in line with economist estimates.
Disposable personal income, or personal income less personal current taxes, rose by 0.3 percent in October after increasing by 0.4 percent in September.
Personal spending also increased in line with estimates, rising by 0.2 percent in October following a 0.7 percent advance in September.
Excluding price changes, personal spending still edged up by 0.2 percent in October after rising by 0.3 percent in the previous month.
The report also said personal saving as a percentage of disposable personal income inched up to 3.8 percent in October from 3.7 percent in September.
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