U.S. inflation slows to 3.2% in October

Investing.com -- Headline inflation in the U.S. slowed by more than expected in October, in a boost for Federal Reserve officials keen on corralling price pressures in the world's largest economy.

The U.S. consumer price index (CPI) rose by 3.2% in October on an annualized basis, decelerating from a rate of 3.7% in September. It was the yearly reading's first decline in three months. Month-on-month, the measure came in at 0.0%, down from 0.4%.

Economists had seen the figures at 3.3% annually and 0.1% from the prior month.

Bringing inflation back down to the Fed's 2% target rate has been the major objective of a long-standing series of interest rate hikes by the central bank, meaning that policymakers will likely welcome a renewed cooling in price growth.

Core CPI, which takes out more volatile items like food and energy, rose by 4.0% annually and 0.2% monthly. Although this pace was also slower than forecasts, it suggests some lingering stickiness in inflation -- a concern that has led some policymakers in recent days to suggest that rates may not be "sufficiently restrictive" to tamp down inflation to 2%.

Indeed, Chair Jerome Powell noted last week that the Fed "will not hesitate" to further raise borrowing costs from their current range of 5.25% to 5.50% "if it becomes appropriate."

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