CPI Rises 0.2% in October, Annual Inflation at 2.6%
The Consumer Price Index (CPI) increased by 0.2% in October, resulting in an annual inflation rate of 2.6%, which aligns with analyst estimates but exceeds the Federal Reserve's target. Core CPI, excluding food and energy prices, rose 0.3% monthly and 3.3% annually.
For the 12 months ending in September, CPI was at 2.4%. This data supports expectations that the Fed will continue its easing strategy through the year. The likelihood of a second 25-basis point interest rate cut in December has risen to 82%, up from 58% previously, according to CME Group data.
Looking ahead to 2025, the return of President-elect Donald Trump may introduce challenges for the central bank due to his economic plans. The release of these figures precedes Fed Chair Jerome Powell's upcoming speech at the Fed Bank of Dallas, where insights into economic policy may be shared.