US inflation eases in October but still near decades-high

Washington, US – US consumer prices cooled in October but remained at decades-high levels, according to government data, keeping the pressure on President Joe Biden as his Democratic party struggles to retain control of Congress.

The closely-watched report showed more evidence of rising costs, including a rebound in

gasoline prices. But there were positive signs in the consumer price index (CPI), which showed

annual inflation slowed to 7.7 per cent in October, even while underscoring a heightened cost of living, the Labor Department reported.

That was the lowest annual increase since January, fueling hopes that soaring costs will start to pull back and causing Wall Street stocks to rally.

Biden welcomed the data, saying it showed "a much-needed break in inflation at the grocery store as we head into the holidays."

But he cautioned in a statement that it will "take time to get inflation back to normal levels," with potential setbacks along the way, and vowed to keep helping households with living costs.

While the annual inflation rate was down from a harsh 9.1 per cent in June - the highest in 40 years - latest numbers are unlikely to bring quick reprieve from the Federal Reserve's aggressive moves to cool the economy.

Russia's war in Ukraine has sent food and fuel prices soaring, and the energy index surged 17.6 per cent over the past 12 months, according to the data.

Excluding volatile food and energy prices, "core" CPI rose 6.3 per cent in October from a year

ago, slightly below the rate in September.

As residents reel from soaring costs, the US central bank has moved forcefully to lower demand and bring prices down.

The Fed has raised the benchmark lending rate six times this year, including four consecutive giant rate hikes, despite fears it could trigger a recession.

Fed Chair Jerome Powell last week said it was premature to consider pausing the hikes, but there is a growing chorus of voices, including some Fed offi

cials, advocating for smaller steps in coming months.

Dallas Fed President Lorie Logan said Thursday that she believes "it may soon be appropriate to slow the pace of rate increases" so policymakers can assess how

conditions are changing.