CPI inflation October 2024:

Inflation rose in October, although it was largely in line with Wall Street expectations, the Bureau of Labor Statistics reported Wednesday.

The consumer price index, which measures the cost of a range of goods and services, rose 0.2% for the month. The 12-month inflation rate rose by 0.2 percentage points to 2.6% compared to September.

The values ​​were both in line with Dow Jones estimates.

Without taking food and energy into account, the development was even more pronounced. Core CPI rose 0.3% for the month and was 3.3% annually, also in line with forecasts.

Stock market futures rose after the release while Treasury yields fell.

Energy costs, which have fallen in recent months, remained unchanged in October, while the food index rose 0.2%. Year-on-year, the energy sector fell 4.9%, while the food sector increased 2.1%.

Despite signs of weakening elsewhere, accommodation prices continued to make a significant contribution to the development of the consumer price index. The Shelter index, which makes up about a third of the broader index, climbed another 0.4% in October, twice as much as September and was up 4.9% on an annual basis. According to the BLS, this category accounted for more than half of the increase in the overall CPI measure.

The readings pushed inflation further away from the Federal Reserve’s 2 percent target and could complicate the central bank’s future monetary policy strategy, particularly if a new administration takes over the White House in January.

President-elect Donald Trump’s plans to impose more tariffs and government spending have the potential to both boost growth and exacerbate inflation, which remains a significant problem for U.S. households even as it moderates from its meteoric peak in mid-2022.

As a result, traders have scaled back their expectations of impending Fed rate cuts in recent days. The central bank has already cut its key interest rate by 0.75 percentage points and was expected to take strong action.

However, by the end of 2025, traders only expect further cuts of three-quarters of a point, about half a point less than what was priced in before the presidential election.

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