Keystone
In October, the inflation rate in the USA rose to 2.6 percent, which was in line with economists’ expectations. The development raises questions about future economic policy.
The inflation rate in the USA rose to 2.6 percent in October, as announced by the US Department of Labor in Washington. This development had been forecast by economists and marks the end of a six-month decline, which had reached its lowest point since February 2021 in September with a rate of 2.4 percent. Compared to the previous month, prices rose by 0.2%, which was also in line with forecasts.
The core inflation rate, which excludes energy and food prices, remained stable at 3.3% in October. The US Federal Reserve pays particular attention to this indicator, as it is considered a more reliable indicator of the general price trend.
Influencing factors and forecasts
Despite the increase, experts see no indication of a lasting trend towards higher inflation rates. Elmar Völker, Chief Economist at Landesbank Baden-Württemberg, explains: “The increase in the annual rate is due to base effects because the price level in the comparative month of October 2023 was relatively low.” The main factors behind the price increase include housing costs, used cars and airline tickets.
The Fed recently cut its key interest rates by 0.25 percentage points and a…
