U.S. Inflation Expected to Decelerate in October, Core Measures Soften
U.S. inflation is projected to show a slower pace of increase in October, following two months of higher-than-anticipated price gains for consumers. According to a Bloomberg survey of economists, the Consumer Price Index (CPI) is expected to rise by 0.3% in October, a decrease from the 0.6% increase observed in the previous month. The core CPI, which excludes volatile food and energy components, is also anticipated to soften to a 0.24% increase, down from 0.33% prior. This projected moderation is attributed to slower price gains in both goods, including used cars and consumer electronics, and services, where owners' equivalent rent saw a reduction from a September spike. Despite this expected slowdown, the Producer Price Index (PPI) for October is forecast to accelerate to 6.6% year-over-year, marking the steepest annual increase in nearly four years, indicating persistent inflationary pressures for businesses.
