Inflation in the United States saw a slight increase in October for the first time since March. The consumer price index rose to 2.6% last month compared to the same period last year, according to a report by the Bureau of Labor Statistics. This is a slight increase from the 2.4% annual rate in September, marking the first rise in annual inflation in seven months.
The report also revealed that “core” inflation, which excludes volatile food and energy prices, remained steady at 3.3% over the 12 months ending in October. Despite the slight increase in inflation, price growth for many basic items remained steady.
The increase in consumer prices was largely driven by a rise in rents and housing costs, which accounted for over half the monthly gains. Shelter costs rose 0.4% from September to October and are 4.9% pricier than the same time a year ago.
Food costs inched up 0.2% in October, less than September’s 0.4% monthly gain, with eggs and dairy products still seeing price increases. Used vehicle costs shot up 2.7% last month, while new autos stayed flat and apparel prices fell 1.5%.
The inflation data met Wall Street expectations, and markets responded favorably. Stock futures turned higher while traders bid up the price of government bonds. However, some analysts warn that the momentum is in the wrong direction, suggesting inflation is “sticky.”
The rise in inflation comes as economic concerns played a significant role in the presidential election. Over the past four years, consumer prices have cumulatively increased about 20%, with the costs of many other goods and services rising even faster. Despite average wage gains continuing to outstrip price hikes, leaving many households better off than before the pandemic, steeper expenses for everything from child care to home insurance have left plenty of consumers fed up and looking for change.
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