“October Inflation: Slowing Prices Anticipated

The latest inflation report from the U.S. Bureau of Labor Statistics is expected to show slower price growth in the month of October. The report, due out on Wednesday morning, will provide a detailed look at U.S. consumer prices over the past month. Inflation, measured by the Consumer Price Index (CPI), has been consistently rising in recent months, with September recording the largest monthly increase since the start of the year. However, economists expect the month of October to be different, as the effects of tax cuts and low unemployment should have taken their toll on prices. The cost of living has been on the rise since the second quarter of 2017, and many analysts are predicting that the pace of inflation will remain around the current levels of 2% for the rest of the year. The October inflation report will likely provide more confirmation as to how the U.S. economic landscape is weathering the winds of change. Increases in the price of energy, rent and medical products and services are expected to offset the expected decrease in the prices of motor vehicles and apparel. Analysts also predict that lack of clarity around trade deals and rising health care costs are likely to further fuel inflation in coming months. More explicitly, analysts expect that gasoline, food and shelter costs would be major factors in any increase in CPI. In addition, there has been growing speculation that the Federal Reserve will take action on interest rates in the near future, a move which could have an impact on prices. The October inflation report is an important indicator for economists and investors alike, as it provides insight into the potential direction of policy, employment and growth, making it a watchlist item for many. While the impact of volatile variable such as the trade war and political unrest remains uncertain, the current outlook suggests that inflation should remain steady in the near future. The latest inflation report from the U.S. Bureau of Labor Statistics is expected to show slower price growth in the month of October. The report, due out on Wednesday morning, will provide a detailed look at U.S. consumer prices over the past month. Inflation, measured by the Consumer Price Index (CPI), has been consistently rising in recent months, with September recording the largest monthly increase since the start of the year. However, economists expect the month of October to be different, as the effects of tax cuts and low unemployment should have taken their toll on prices. The cost of living has been on the rise since the second quarter of 2017, and many analysts are predicting that the pace of inflation will remain around the current levels of 2% for the rest of the year. The October inflation report will likely provide more confirmation as to how the U.S. economic landscape is weathering the winds of change. Increases in the price of energy, rent and medical products and services are expected to offset the expected decrease in the prices of motor vehicles and apparel. Analysts also predict that lack of clarity around trade deals and rising health care costs are likely to further fuel inflation in coming months. More explicitly, analysts expect that gasoline, food and shelter costs would be major factors in any increase in CPI. In addition, there has been growing speculation that the Federal Reserve will take action on interest rates in the near future, a move which could have an impact on prices. The October inflation report is an important indicator for economists and investors alike, as it provides insight into the potential direction of policy, employment and growth, making it a watchlist item for many. While the impact of volatile variable such as the trade war and political unrest remains uncertain, the current outlook suggests that inflation should remain steady in the near future.