Inflation eased in October for the first time in months, providing welcome relief to American consumers who have been crushed by unrelenting price increases.
The Labor Department said Tuesday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rent, was unchanged in October from the previous month. Prices climbed 3.2% from the same time last year.
Both of those figures are lower than estimates by Refinitiv economists.
Excluding the more volatile measurements of food and energy, so-called core prices increased 0.2% for the month and 4% on an annual basis, also lower than expected.
Although inflation has cooled considerably from a peak of 9.1%, it still remains above the Federal Reserve’s 2% target rate.
High inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent. The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily affected by price fluctuations.
This is a developing story. Please check back for updates.