WASHINGTON: US consumer prices cooled in October but remained at decades-high levels, according to government data released Thursday, keeping the pressure on President Joe Biden’s administration as Democrats struggle to retain control of Congress.
The closely-watched report showed more evidence of rising costs in a year when surging inflation was at the top of voter concerns as Americans headed to the polls in this week’s midterm elections.
The consumer price index (CPI), a key measure of inflation, rose 7.7 percent from October 2021, easing from September’s pace but still underscoring the heightened cost of living that have squeezed many households, the Labor Department reported.
Dollar slumps as US inflation slows
While the annual inflation rate was the lowest since January and down from a harsh 9.1 percent in June – the highest in 40 years – latest figures are unlikely to bring quick reprieve from the Federal Reserve’s ongoing interest rate hikes to cool the economy.
The Russia war in Ukraine has sent food a fuel prices soaring and the energy index surged 17.6 percent over the past 12 months, according to the data.
Excluding volatile food and energy prices, “core” CPI rose 6.3 percent in October from a year ago, slightly below the rate in September.
As residents reel from soaring costs, the US central bank has embarked on an aggressive campaign to lower demand and bring prices down, raising the benchmark lending rate six times this year, including four consecutive giant rate hikes, despite fears it could trigger a recession.
Prices rose 0.4 percent in October, the same as in September, while core slowed to 0.3 percent, half the pace of the prior month.
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