The pace of consumer price increases accelerated in the United States in October, potentially prompting the Federal Reserve to consider keeping interest rates elevated for a longer period, amid expectations that Donald Trump’s economic policies could hinder the downward trend in prices.
Data released on Thursday showed that the Consumer Price Index (CPI) rose by 2.6% year-over-year in October, in line with expectations, after slowing to 2.4% in September. On a monthly basis, it increased by 0.2%.
The core CPI—which excludes food and energy—rose by 3.3% year-over-year, maintaining September’s annual reading, and increased by 0.3% month-over-month.
In a statement, the Bureau of Labor Statistics explained that most of the inflation increase was driven by a 0.2% monthly rise in shelter costs, with food prices rising at a similar rate, offsetting stability in energy prices.
On an annual basis, energy costs declined by 4.9%, with gasoline prices down by 12.2% and the fuel oil index falling by 20.8%. In contrast, electricity prices rose by 4.5%, and natural gas prices increased by 2%.