The Clap
The consumer price index (CPI) rose 7.7% annually during October, dropping under 8% for the first time since Feb 2022.
The Deets
The CPI increased by 0.4% from the previous month, less than the expected 0.5%.
The core CPI, which excludes food and energy costs, increased by 6.3% annually, less than the expected 6.5%.
The slowdown in inflation caused markets to surge following the news, as hopes of smaller interest rate hikes are now becoming more of a possibility.
So What
The Fed had declared a war on inflation, hiking interest rates to try to slow it down. The Fed’s efforts seemed almost ineffective up until this month.
Now What
Investors will patiently await the Fed’s decision next month on whether another 0.75% interest rate hike is on the books or not.
