Even with last month’s tentative easing of inflation, the Federal Reserve is widely expected to keep raising interest rates.
Price increases moderated in the United States last month in the latest sign that the inflation pressures that have gripped the nation might be easing as the economy slows and consumers grow more cautious.
Consumer inflation reached 7.7 percent in October from a year earlier and 0.4 percent from September, the Labor Department said Thursday. The year-over-year gain was the smallest since January. Excluding volatile food and energy prices, “core” inflation rose 6.3 percent in the past 12 months and 0.3 percent from September.
The numbers were all lower than economists had expected.
Even with last month’s tentative easing of inflation, the Federal Reserve is widely expected to keep raising interest rates to try to stem persistently high price increases. Many economists warn, though, that in continuing to aggressively tighten credit, the Fed is likely to cause a recession by next year.
So far this year, the Fed has raised its benchmark interest rate six times in sizable increments, heightening the risk that prohibitively high borrowing rates — for mortgages, auto purchases and other high-cost expenses — will tip the world’s largest economy into recession.
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Inflation cooled to 7.7% in October, the smallest year-over-year gain since January.
But even with last month’s tentative easing of inflation, the Fed is widely expected to keep raising interest rates. https://t.co/ozOUMjm4GN
— POLITICO (@politico) November 10, 2022
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