Prices stayed flat in October as annual inflation dropped on November 14, 2023 at 1:36 pm Business News | The Hill

Consumer prices moved little last month as inflation flattened out in October, according to data released Tuesday by the Department of Labor.

The consumer price index (CPI), a closely watched gauge of inflation, stayed even with its September level last month. Prices were up 3.2 percent over the past year, far lower than September’s annual inflation rate of 3.7 percent.

The new inflation figures are a welcome sign of reprieve after three consecutive months of rising or unchanged inflation. Economists expected the annual inflation rate to drop to 3.3 percent in November, according to consensus estimates.

Housing costs also rose at a much slower rate than in September, according to the Labor Department, taking another bite out of overall inflation.

The October inflation slowdown should keep the Federal Reserve on track to finish the year without another interest rate hike. The Fed has kept rates unchanged after its past two policy meetings and is expected hold off again at its final summit of the year in December.

Fed officials are wary of pushing the economy into a recession after months of slowing job growth and easing prices. The Fed may stop raising rates this year, but the bank is likely to keep them higher than their pre-pandemic level to prevent another inflation flare-up.

Slowing inflation is also a crucial boost to President Biden and Democrats, who are facing deep voter resentment after more than two years of high inflation.

Americans are feeling the pinch of prices driven higher by inflation and the interest rates meant to bring them down, a politically toxic combination for Biden as he seeks another term.

Updated at 9:08 a.m.

​Business, Economy Consumer prices moved little last month as inflation flattened out in October, according to data released Tuesday by the Department of Labor. The consumer price index (CPI), a closely watched gauge of inflation, stayed even with its September level last month. Prices were up 3.2 percent over the past year, far lower than September’s annual…