US Inflation Stalls in October, Signaling Easing Price Pressures

The US Consumer Price Index was flat in October compared to September and came in below economist forecasts of a 0.1% rise. The annual rate of inflation in October based on CPI was 3.2%, lower than the forecasted rate of 3.3%, reflecting some easing of price pressures. Core CPI, excluding volatile food and energy prices, rose 0.2% in October and 4% annually. The annual core rate was the lowest since September 2021 at 4%, below forecasts of 0.3% and 4.1%. The flat CPI report will likely reinforce expectations that the Federal Reserve will pause interest rate hikes, after aggressively raising rates this year. Markets rallied on the news.