Cooling US inflation raises hopes of an end to rate hikes

WASHINGTON: US consumer inflation cooled more than expected last month, according to government data published Tuesday, providing welcome news for policymakers looking to control price increases without damaging the economy.

The consumer price index (CPI) inflation gauge increased by 3.2 percent in the 12 months to October, down from 3.7 percent a month earlier, the Labor Department said. Inflation was unchanged month-over-month in October from September, with a sharp monthly decline noted in energy prices. Both the annual and monthly figures came in below the median expectations of economists surveyed by MarketWatch.

“Today we saw more progress bringing down inflation while maintaining one of the strongest job markets in history,” President Joe Biden said in a statement. “I’m working to get results for the American people and it’s happening.” US stock markets rose sharply on the news of cooling inflation, which reduces the likelihood of another interest rate hike next month.

“I think it’s very encouraging,” Nationwide economist Kathy Bostjancic told AFP.