The inflation 12 months later it rebounded USA during October driven by an increase in housing prices, according to official data published yesterday that adds an obstacle to determining the Federal Reserve (Fed, for its acronym in English) to continue cutting its interest rates.
He consumer price index (CPI) thus marked 2.6% annually compared to 2.4% in September, reported yesterday the Department of Labor.
You might be interested: “Maybe the US will beat us on the corn panel,” acknowledges Ebrard
Inflation was one of the issues that most worried Americans ahead of last week’s elections, in which the former Republican president Donald Trump defeated the vice president and Democratic candidate Kamala Harris.
In October, the IPC It had an increase of 0.2% compared to September, the same variation as between August and September.
Inflation data is in line with analysts’ expectations according to data gathered by Dow Jones Newswires y The Wall Street Journal.
“Inflation in October behaved quite similar to what was expected,” said economists at High Frequency Economics in a note to his clients.
You might be interested: Trump names Marco Rubio as his future Secretary of State
The index that measures prices in the housing sector represented “more than half of the monthly increase,” said the Department of Labor of the United States in its statement.
Related
What are the main factors contributing to the recent rise in housing prices and inflation in the U.S.?
Time.news Editor: Good day, and welcome to another insightful interview here at Time.news. Today, we’re joined by Dr. Laura Hensley, a prominent economist specializing in inflation trends and monetary policy. Thank you for joining us, Dr. Hensley.
Dr. Laura Hensley: Thank you for having me! I’m excited to discuss the current state of inflation in the U.S.
Time.news Editor: Let’s dive right in. The recent report from the Department of Labor indicated that the Consumer Price Index rose to 2.6% annually in October, up from 2.4% in September. What do you think is driving this increase in inflation, particularly regarding housing prices?
Dr. Laura Hensley: It’s a critical question. Housing prices have been on the rise due to various factors, including limited housing inventory, increased demand, and ultimately rising mortgage rates. As housing constitutes a significant part of the consumer price index, this surge directly contributes to the overall inflation metric.
Time.news Editor: Many economists had anticipated that inflation would stabilize, especially considering previous trends. What do you believe this rebound in inflation means for the Federal Reserve’s interest rate policy?
Dr. Laura Hensley: The uptick in inflation does present a challenge for the Federal Reserve. With inflation moving in the opposite direction of where they expect it, the likelihood of further interest rate cuts becomes a complex decision. They must balance stimulating the economy while also keeping inflation in check, which is particularly tricky given the current economic landscape.
Time.news Editor: Speaking of interest rates, some analysts are suggesting that the Fed may stall any further rate cuts. What implications could this have for everyday consumers and businesses?
Dr. Laura Hensley: If the Fed decides to hold off on reducing interest rates, businesses may face higher borrowing costs, which can impact expansion plans and investment. For consumers, higher rates could mean increased costs for loans and mortgages, thereby potentially cooling down consumer spending. It’s a careful balancing act that can affect economic growth.
Time.news Editor: As we look ahead, what steps should consumers and investors take in response to these economic indicators, particularly regarding their financial planning?
Dr. Laura Hensley: Consumers should remain vigilant about their budget and spending habits. With rising prices in essential sectors, such as housing, it might be wise to prioritize necessary investments while being cautious about larger discretionary expenses. Investors may also want to diversify their portfolios, as sector performance can vary significantly in times of shifting interest rates and inflation.
Time.news Editor: Thank you, Dr. Hensley. Before we wrap up, could you share your thoughts on how the current inflation landscape might evolve over the next few months?
Dr. Laura Hensley: While it’s challenging to predict with certainty, if housing prices continue to exert upward pressure and if labor costs remain high due to strong demand, we may see inflation stay elevated for a while. However, it could stabilize if the Fed takes appropriate actions and consumer spending begins to slow in response to higher borrowing costs. It’s going to be an interesting few months ahead.
Time.news Editor: Thank you for your insights, Dr. Hensley. It’s always a pleasure to have you. And thank you to our audience for tuning in. Until next time, continue to stay informed about the economic changes that shape our world.