Posted on 11/27/24
| News Source: FOX45
Baltimore, MD - Nov. 27, 2024 - Inflation rose in October, with the Federal Reserve's preferred gauge showing a 2.3% increase from a year earlier, up from 2.1% in September. Core inflation, which excludes food and energy, also edged higher to 2.8% from 2.7%. These figures highlight a stall in the inflation decline seen since its mid-2022 peak of 7%.
Price pressures persist in services such as rent, dining, and insurance, despite broader improvements. Meanwhile, consumer spending and incomes grew robustly in October, with incomes rising 0.6% and spending increasing by 0.4%, supporting continued economic growth.
The inflation uptick and resilient economic activity may prompt the Federal Reserve to slow its pace of interest rate cuts. Economists expect a quarter-point rate cut in December, with potential delays in further reductions. President-elect Donald Trump's proposed policies, including tax cuts and tariffs, could further impact inflation and the Fed's rate strategy.