Nov 13, 2024 (Baystreet.ca via COMTEX) --
Inflation in the U.S. rose to an annualized rate of 2.6% in October, matching the expectations of economists and market analysts.
The Consumer Price Index (CPI) increased 0.2% month-over-month in October, also meeting expectations, according to data from Dow Jones Newswires.
Inflation during October rose from an annualized rate of 2.4% in September of this year.
The October rise in inflation was more pronounced for so called "core inflation" that strips out volatile food and energy prices.
The core CPI accelerated 0.3% month-over-month and rose 3.3% year-over-year in October.
Exerting upward pressure on consumer prices in October were costs for food, which increased 2.1% from a year earlier.
Shelter prices also continued to be a major contributor to inflation, with the shelter index rising 4.9% on an annual basis during October.
Increases to shelter costs accounted for more than half the gain in the all-items CPI, according to the U.S. Bureau of Labor Statistics.
Partially offsetting those increases were energy prices, which were flat month-over-month in October and down 4.9% from the same month in 2023.
Inflation in the U.S. remains above the U.S. Federal Reserve's 2% annualized target.
The central bank has lowered interest rates 75-basis points this year amid signs that inflation had been declining.
The U.S. Federal Reserve is next scheduled to make a decision on interest rates Dec. 18. The central bank's Federal Funds Rate is currently at 4.50% to 4.75%.
Futures traders are betting that there's a 55% chance the Fed will further lower interest rates and a 45% chance that they'll hold rates steady at the December policy meeting.
COMTEX_459765015/2559/2024-11-13T10:58:00
