Consumer prices
US inflation rate rises to 2.6 percent
The inflation rate in the USA has recently fallen month after month. But not anymore. Has this broken the positive trend?
The downward trend in inflation did not continue in the US in October. The inflation rate has risen again. Consumer prices rose by 2.6 percent compared to the same month last year, as the US Department of Labor announced on Wednesday in Washington. Economists had expected this.
In September, the rate reached 2.4 percent, the lowest value since February 2021. Previously, it had fallen for six months in a row. Compared to the previous month, prices rose by 0.2 percent in October. Economists had also predicted this.
The core inflation rate excluding energy and food remained at 3.3 percent in October. Here too, the forecasts were made. The core rate is given particular attention by the US Federal Reserve. According to experts, it reflects the general price trend better than the overall rate.
President Trump’s uncertainty factor
Despite the increase in the rate, economists do not see a trend towards a higher level. “The increase in the annual rate is due to base effects because the price level was relatively low in the comparable month of October 2023,” said Elmar Völker, chief economist at Landesbank Baden-Württemberg. Price drivers were housing costs, used cars and airline tickets.
The Fed cut its key interest rates by 0.25 percentage points last week. A further reduction is expected in December.
However, the outlook for next year is uncertain. Donald Trump will take office as president in January. His proposed policy measures could lead to higher inflation, economists say. This is likely to limit the Fed’s scope for lowering interest rates.
dpa
Source: Stern
