Consumer prices rose at a slower annual rate in October, indicating that the Federal Reserve’s interest rate rises affect consumer spending patterns. In October, the Consumer Price Index (CPI) increased by 7.7% over the previous year. According to Bureau of Labour Statistics data, this is the weakest 12-month gain since the year ending in January 2022.

The CPI climbed 0.4% month on month in October, the same as in September. Despite drops in the indices for used cars and trucks (down 2.4%), medical services (down 0.5%), clothes (down 0.7%), and airline prices (down 1.1%), this occurred. There was also a rise in the shelter index, which rose by 0.8% month over month. That is the highest monthly gain in that index since August 1990, accounting for more than half of the monthly increase in all items index. Other components were a 0.6% month-over-month gain in the food index and a 4.0% increase in the fuel index, which jumped from September after three consecutive months of losses.

Despite these gains, the BLS reports that the rise in the shelter index is primarily responsible for the 0.3% monthly increase and 6.3% yearly increase in all items minus the food and energy index.

Some fascinating inflation data tendencies emerge when the data is divided down regionally. The epidemic housing market boomtowns of Phoenix, Atlanta, Miami, and Tampa, Florida, according to Redfin, have some of the highest inflation rates in the country. While slowing inflation is welcome, most believe it will have little influence on future Fed policy. Click here to read more about this.

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