Here’s the inflation breakdown for October 2023 — in one chart
Inflation declined in October, continuing a broad slowdown as gasoline prices retreated during the month. However, price pressures remain under the surface and it may take a while for them to return to their pre-pandemic baseline, economists said.
«The disinflationary trend is in place,» said Sarah House, senior economist at Wells Fargo Economics. «But we're getting into a harder part of the cycle.»
In October, the consumer price index increased 3.2% from 12 months earlier, down from 3.7% in September, the U.S. Bureau of Labor Statistics said Tuesday.
The CPI is a key barometer of inflation, measuring how quickly the prices of anything from fruits and vegetables to haircuts and concert tickets are changing across the U.S. economy.
The October reading is a significant improvement on the pandemic-era peak of 9.1% in June 2022 — the highest rate since November 1981. Prices are therefore rising much more slowly than they had been.
«Inflation is slowly but steadily moderating, and all the trend lines look good,» said Mark Zandi, chief economist at Moody's Analytics. «It feels like by this time next year inflation will be very close to the [Federal Reserve's] target, and something the American consumer will feel comfortable with.»
The Fed aims for a 2% annual inflation rate over the long term.
Gasoline prices fell 5% in October, according to Tuesday's CPI report.
Prices for regular-grade gasoline declined by about 33 cents a gallon between Oct. 2 and Oct. 30, from $3.80 a gallon to $3.47, according to the U.S. Energy Information Administration.
They've fallen further since then. Average prices at the pump were $3.37 a gallon nationwide as of Nov. 13, according to AAA.
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