Annual inflation has inched up in the past month, new data out today finds, the first time inflation has jumped up in months after a steady stream of decreases.
The Consumer Price Index (CPI) for all items rose 2.6% for the 12 months ending in October, before seasonal adjustment, the U.S. Bureau of Labor Statistics (BLS) reported Nov. 13. That’s up from the 2.4% year-over-year increase notched in September.
On a monthly basis, the CPI increased 0.2%, the same increase as the previous three months.
The index for shelter rose 0.4% in October, accounting for over half of the monthly all items increase, the BLS said.
Core CPI accelerated 0.3% for the month and 3.3% annually.
Although the inflation data was in line with most economists’ expectations, it’s still significant that it ticked up in October, especially as many employees are still feeling the sting of higher costs.
The latest CPI report comes after the Federal Reserve cut interest rates earlier this month for the second time this year.
Justin Ladner, senior labor economist at SHRM, said the halt in the steady fall in inflation in recent months appears to have been driven by rising prices in a few categories, including transportation and medical costs. Largely, though, he said, the rise won’t make a big mark—at least yet.
“Over the remainder of 2024, it would be unsurprising if inflation stagnated or fell much more slowly than in past months, in part because the Fed is expected to continue its policy of gradually lowering interest rates,” he said. “Given that inflation is already low by historical standards, this development has limited implications for consumers and businesses.”
Real Earnings
Real average hourly earnings for all employees increased 0.1% from September to October, the BLS reported separately Wednesday.
Real average hourly earnings increased 1.4%, seasonally adjusted, from October 2023 to October 2024, the BLS reported separately Wednesday. The change in real average hourly earnings combined with no change in the average workweek resulted in a 1.4% increase in real average weekly earnings over this period.
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