Business · India Bureau
US inflation expected to moderate in October after sharp two-month surge
US consumer price growth is anticipated to cool this month following the steepest monthly increase since April, offering a potential reprieve in the central bank's inflation battle. Economists surveyed by Bloomberg project a 0.3% monthly rise after the previous month's 0.6% jump.
LSN India ·
The US consumer price index, a key gauge of inflation tracked closely by policymakers and markets globally, is expected to show signs of moderation when October data is released on Tuesday, according to median projections from a Bloomberg survey of economists.
After climbing 0.6% in September—the largest monthly increase since April—prices are forecast to rise just 0.3% in October. The slowdown, if realised, would mark a welcome development for the Federal Reserve as it assesses whether recent interest rate hikes are effectively cooling persistent price pressures in the world's largest economy.
Inflation remains a significant concern for global markets and policymakers monitoring the US economic outlook. The anticipated moderation comes as energy prices have stabilised and some supply-chain constraints have eased, potentially taking pressure off household costs.
The monthly figures follow a broader trend of volatile inflation readings in recent months, with the economy showing mixed signals about whether price growth has peaked or may accelerate again. Investors and central banks worldwide will scrutinise Tuesday's release for clues about the likely trajectory of US interest rates in coming months.