Federal Reserve announcements and meeting minutes

U.S. Inflation at 2.6% in October, Exceeds Fed's 2% Target

Nov 13, 2024, 01:37 PM

U.S. consumer prices rose by 2.6% in October compared to the previous year, marking a slight uptick in inflation after months of easing, according to the U.S. Bureau of Labor Statistics. This increase comes after inflation had been settling at a 0.2% monthly gain, which equates to an annual pace of 2.4%. Despite this, inflation remains above the Federal Reserve's target of 2%, with underlying price pressures holding steady at 3.3% year/year. The October Consumer Price Index (CPI) data suggests that progress towards lower inflation has slowed since mid-year, potentially leading to fewer interest rate cuts by the Federal Reserve in the coming year. This development underscores the ongoing challenges faced by Fed officials in achieving their inflation target, with inflation still running at a +3.6% clip annually.