Please ensure Javascript is enabled for purposes of website accessibility

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

3 days ago

Trump Says He’s Willing to Let Migrant Farm Laborers Stay in US

3 days ago

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

4 days ago

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

4 days ago

Trump’s Sweeping Tax-Cut and Spending Bill Wins Congressional Approval

4 days ago

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

4 days ago

US Supreme Court to Decide Legality of Transgender School Sports Bans

4 days ago

Nvidia Set to Become the World’s Most Valuable Company in History

4 days ago

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

4 days ago
US Consumer Inflation Eased to 7.7% Over Past 12 Months
gvw_ap_news
By Associated Press
Published 3 years ago on
November 10, 2022

Share

Price increases moderated in the United States last month in the latest sign that the inflation pressures that have gripped the nation might be easing as the economy slows and consumers grow more cautious.

Consumer inflation reached 7.7% in October from a year earlier and 0.4% from September, the government said Thursday. The year-over-year increase, a slowdown from 8.2% in September, was the smallest rise since January. A separate gauge called core inflation, which excludes volatile food and energy, rose 6.3% in the past 12 months and 0.3% from September.

The numbers were all lower than economists had expected.

Helping drive the inflation slowdown from September to October were used car prices, which dropped for a fourth straight month. Also down were the prices of clothing and medical care. Food price increases slowed. By contrast, energy prices rebounded in October after having declined in August and September.

Even with last month’s tentative easing of inflation, the Federal Reserve is widely expected to keep raising interest rates to try to stem persistently high price increases. But Thursday’s better-than-expected data raised the possibility that the Fed could decide to slow its rate hikes — a prospect that sent stock prices jumping immediately after the government issued the figures.

“We expect this to mark the start of a much longer disinflationary trend that we think will convince the Fed to halt its (hikes) early next year,” said Paul Ashworth, chief North American economist at Capital Economics, a consulting firm. “With supply shortages normalizing, deflationary pressure is now finally showing up.”

Many economists have warned that in continuing to tighten credit, the central bank is likely to cause a recession by next year. So far this year, the Fed has raised its benchmark interest rate six times in sizable increments, heightening the risk that prohibitively high borrowing rates — for mortgages, auto purchases and other high-cost expenses — will tip the world’s largest economy into recession.

Some economists suggested that the latest inflation data shows that the hikes are beginning to achieve their goal, though the Fed needs to see further evidence.

“The data will be welcome news for the (Fed), finally showing some response in prices” to the rate increases, said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.

In the midterm elections that ended Tuesday, roughly half of voters cited inflation as the top factor in their decisions, according to VoteCast, an extensive survey of more than 94,000 voters nationwide conducted for The Associated Press by NORC at the University of Chicago. About 8 in 10 said the economy was in bad shape, and a slim majority blamed President Joe Biden’s policies for worsening inflation. Just under half said factors beyond Biden’s control, such as Russia’s invasion of Ukraine, were to blame.

Those economic anxieties contributed to the loss of Democratic seats in the House of Representatives, though Republicans failed to score the huge political gains that many had expected. And a sizable chunk of voters — 44%, according to VoteCast — said their top concern was the future of democracy, an issue that was emphasized by Biden and Democratic congressional candidates.

Even before the release of Thursday’s figures, inflation by some measures had begun to ease and could continue to do so in coming months. Most gauges of workers’ wages, for example, show that the robust pay increases of the past 18 months have leveled off and have begun to fall. Though worker pay is not a primary driver of higher prices, it can compound inflationary pressures if companies offset their higher labor costs by charging their customers more.

Except for automakers, which are still struggling to acquire the computer chips they need, supply chain disruptions have largely unsnarled. Shipping costs have dropped back to pre-pandemic levels. The backup of cargo ships off the port of Los Angeles and Long Beach has been cleared.

And as declines in new rents that have emerged in real-time measures from such sources as ApartmentList and Zillow begin to be captured in the government’s forthcoming measures, that factor should also reduce inflation.

Even as many fear that the economy will fall into recession next year, the nation’s job market has remained resilient. Employers have added a healthy average of 407,000 jobs a month, and the unemployment rate is just 3.7%, close to a half-century low. Job openings are still at historically high levels.

But the Fed’s rate hikes have inflicted severe damage on the American housing market. The average rate on a 30-year fixed mortgage has more than doubled over the past year and topped 7% this week. As a result, investment in housing collapsed in the July-September quarter, falling at a 26% annual rate.

Higher mortgage rates have depressed sales. Home prices are slowing sharply compared with a year ago and have begun to fall on a monthly basis. The cost of a new apartment lease is also declining.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

TikTok Building New Version of App Ahead of Expected US Sale, the Information Reports

DON'T MISS

Hamas Government Office Rejects US Accusation of Involvement in Gaza Aid Site Attack

DON'T MISS

Death Toll From Texas Floods Reaches 78, Trump Plans Visit

DON'T MISS

Trump Calls Musk’s Formation of New Party “Ridiculous” and Confusing

DON'T MISS

Fresno DUI Driver Slams Into CHP Motorcycle, Tow Truck on Highway 99

DON'T MISS

Russia Downs 120 Ukrainian Drones Overnight, Defense Ministry Says

DON'T MISS

Israel Sends Delegation to Qatar for Gaza Talks Ahead of Netanyahu Trip to US

DON'T MISS

San Luis Obispo’s Madre Fire Grows to Nearly 80,000 Acres, 30% Contained

DON'T MISS

Musk Announces Forming of ‘America Party’ in Further Break From Trump

DON'T MISS

Death Toll From Texas Floods Reaches 59, Including 21 Children

UP NEXT

Oil Dips Ahead of Expected OPEC+ Output Increase

UP NEXT

Stocks Hit Record, US Dollar Strengthens After Jobs Data

UP NEXT

Trump Administration Will Focus on Fed Chair Replacement in Fall, Bessent Says

UP NEXT

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

UP NEXT

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

UP NEXT

Wall Street Edges Down After ADP Shock. Focus on Trade Talks, Payrolls Data

UP NEXT

Dollar Gains Ground Against Major Peers After Better-Than-Expected US Jobs Data

UP NEXT

Powell Reiterates Fed Will Wait for More Data Before Cutting Rates

UP NEXT

US Senate Republicans Struggling to Unite on Trump’s $3.3 Trillion Tax-Cut Bill

UP NEXT

S&P 500, Nasdaq Close at Record Highs, Cap Best Quarter in Over a Year

Tesla Slides as Musk’s ‘America Party’ Heightens Investor Worries

21 minutes ago

US-Backed 60-Day Gaza Ceasefire Envisages Gradual Return of Hostages, Official Says

24 minutes ago

Trump to Terminate Deportation Protection for Thousands of Hondurans and Nicaraguans in US

28 minutes ago

One Killed, Dozens Wounded in Russian Strikes on Kharkiv in Ukraine

31 minutes ago

Texas Girls’ Camp Mourning Dozens Dead in Floods as Search Teams Face More Rain

33 minutes ago

Netanyahu to Meet Trump at White House as Israel, Hamas Discuss Ceasefire

37 minutes ago

TikTok Building New Version of App Ahead of Expected US Sale, the Information Reports

17 hours ago

Hamas Government Office Rejects US Accusation of Involvement in Gaza Aid Site Attack

17 hours ago

Death Toll From Texas Floods Reaches 78, Trump Plans Visit

17 hours ago

Trump Calls Musk’s Formation of New Party “Ridiculous” and Confusing

17 hours ago

Iran President Says Open to Dialogue With US, Accuses Israel of Assassination Attempt

WASHINGTON – Iranian President Masoud Pezeshkian said he believes Iran can resolve its differences with the United States through dial...

1 minute ago

Iranian President Masoud Pezeshkian speaks during a meeting in Ilam, Iran, June 12, 2025. Iran's Presidential website/WANA (West Asia News Agency)/Handout via REUTERS
1 minute ago

Iran President Says Open to Dialogue With US, Accuses Israel of Assassination Attempt

Poppy, a smart and sweet 2- to 3-year-old dog who survived months alone in a field, is now ready for adoption into a loving home. (Mell's Mutts)
10 minutes ago

Shy but Sweet Field Survivor, Poppy the Pup, Now Up for Adoption

Douglas Wayne Brittain
14 minutes ago

Valley Crime Stoppers’ Most Wanted Person of the Day: Douglas Wayne Brittain

The TESLA logo is seen outside a dealership in the Brooklyn borough of New York City, U.S., April 26, 2021. (Reuters File)
21 minutes ago

Tesla Slides as Musk’s ‘America Party’ Heightens Investor Worries

Palestinians displaced by the Israeli military offensive, shelter in tents, in Gaza City, May 20, 2025. (Reuters File)
24 minutes ago

US-Backed 60-Day Gaza Ceasefire Envisages Gradual Return of Hostages, Official Says

President Donald Trump walks after disembarking Marine One as he arrives at the White House in Washington, D.C., U.S., July 6, 2025. (Reuters File)
28 minutes ago

Trump to Terminate Deportation Protection for Thousands of Hondurans and Nicaraguans in US

A firefighter works at the site of the building hit by a Russian drone strike, amid Russia's attack on Ukraine, in Kharkiv, Ukraine July 7, 2025. (Reuters/Sofiia Gatilova)
31 minutes ago

One Killed, Dozens Wounded in Russian Strikes on Kharkiv in Ukraine

Members from Texas Game Wardens of the Law Enforcement Divison work following flash flooding, in Kerrville, Texas, U.S. July 6, 2025. REUTERS/Marco Bello
33 minutes ago

Texas Girls’ Camp Mourning Dozens Dead in Floods as Search Teams Face More Rain

Help continue the work that gets you the news that matters most.

Search

Send this to a friend