Consumer prices slowed their upward march last month, raising hopes that the fiercest inflation in 40 years may be easing.
The consumer price index increased 7.7% over the 12 months ending in October, the Labor Department said Thursday — the lowest rate of inflation since January and a smaller increase than economists had expected. Core prices, which exclude volatile food and energy costs, rose 6.3%.
Rising prices for shelter, vehicle insurance, new vehicles and personal care were offset by falling prices for airline fares, apparel, used cars and trucks, and medical care.
Like other countries, the U.S. is struggling to control inflation, which is pressuring millions of households and dimming the outlook for the economy as the Federal Reserve keeps raising borrowing costs for businesses and consumers.
So far this year, the central bank has raised its benchmark interest rate six times, 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.
Inflation was near the top of many voters’ minds in the midterm elections that ended Tuesday, with economic anxieties contributing to the loss of Democratic seats in the House of Representatives, though Republicans failed to score the huge political gains that many had expected.
This is a developing story. The Associated Press contributed reporting.
