Inflation ticked up in October, new CPI report shows
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The Consumer Price Index rose 2.6% in the 12 months through October — a tick up from the prior month — while the measure that strips out food and energy held at 3.3%, the Labor Department said on Wednesday.
Why it matters: The worst of the inflation shock is over, but price pressures look stubborn and further progress on cooling those may be stalling.
By the numbers: CPI rose from the 2.4% increase in the year ending in September. The core measure has stayed at 3.3% since June.
- On a monthly basis, CPI rose 0.2%, the same pace as the previous three months. Core CPI rose 0.3% for the third straight month.
The big picture: Voters said inflation was the key economic concern ahead of the 2024 election. Anger over high prices helped fuel President-elect Trump's return to the White House.
- Inflation is well below the peak of 9% reached in 2022. The Federal Reserve has shifted its years-long concerns about inflation to trying to preserve the labor market with rate cuts.
- But Americans care about prices, and it's unlikely that many goods and services will fall back to pre-pandemic prices. That would signal economic weakness.
Between the lines: The Fed cut rates for the second consecutive time last week. It looked likely that officials will do so again in December, though stubborn inflation makes that more uncertain.
- "Overall, inflation has moved much closer to our 2 percent longer-run goal, but core inflation remains somewhat elevated," Fed chair Jerome Powell told reporters last week.
Go deeper: What markets are signaling about the Trump economy
Editor's note: This story was updated with a new chart.
