Last month, consumer prices slowed their ascent, sparking expectations that the strongest inflation in forty years may be abating.
The Consumer Price Index rose 7.7% in the 12 months ended in October, the Labor Department reported on Thursday — the lowest inflation rate so far this year and a smaller gain than projected by economists. Prices excluding volatile food and energy costs increased by 6.3%.
Increasing costs for housing, auto insurance, new vehicles, and personal care were countered by declining costs for airfare, clothes, secondhand automobiles, and medical treatment.
Similar to other nations, the U.S. struggles to control inflation, which is putting pressure on millions of people and dimming the economic picture as the Federal Reserve continues to raise interest rates for businesses and consumers.
This year, the central bank has hiked its benchmark interest rate six times, boosting the possibility that unreasonably high borrowing rates — for mortgages, auto purchases, and other expensive expenditures — may push the world’s largest economy into a recession.
In the midterm elections that concluded on Tuesday, inflation was a major concern for many voters, leading to the loss of Democratic seats in the House of Representatives. However, Republicans failed to achieve the massive political gains that many had anticipated.
This is an evolving narrative. The Associated Press provided reporting support.