The inflation rate in the United States rose two-tenths in October, reaching 2.6 percent, according to the Bureau of Labor Statistics report on Wednesday. This increase breaks a streak of six consecutive months of decline. Core inflation, which excludes energy products and unprocessed foods, remained stable at 3.3 percent, a relevant indicator for the Federal Reserve (Fed) when considering interest rate adjustments.
Regarding consumer prices, they rose two-tenths month-on-month, a trend that has been maintained over the last three months. Additional details reveal that the housing index increased by 0.4 percent, representing the bulk of the monthly increase. The food index rose by 0.2 percent, while the energy index remained unchanged in October, accumulating a year-on-year decrease of 4.9 percent.
The Fed recently announced a quarter-point reduction in interest rates, setting them in the range of 4.5 percent to 4.75 percent. After eleven increases since 2022, the benchmark rate was kept between 5.25 percent and 5.5 percent, the highest figure since January 2001, until the downward trend began in September. The Fed will continue to carefully assess incoming economic data, including inflation, to consider additional adjustments in the future.
Regarding employment in the United States, job creation fell in October, with 12,000 fewer net jobs than the previous month, due to the impact of hurricanes and strikes. Despite this, the unemployment rate remained low at 4.1 percent, according to economists. The U.S. economy remains solid, with no risk of recession, experiencing a Gross Domestic Product (GDP) growth of 0.7 percent in the third quarter of 2024, maintaining the same figure as the previous quarter. The Federal Open Market Committee (FOMC) has a meeting scheduled to discuss interest rates on December 17 and 18.
