US inflation adjusted to what was expected in October. The CPI advanced 2.6% over a year last month, two tenths more than in September and in line with analysts’ expectations. CPI underlyingwhich excludes energy and food, ever more volatile, has been 3.3% from year to year, also sticking to the experts’ forecasts. The same thing happened with the intermonthly rates, of 0.2% for the general index and 0.3% for the underlying index.
These figures are consistent with another rate cut by the Federal Reserve in December. After the “giant” drop of 50 basis points in September and 25 basis points in November, doubts arose about the possibility of a new normal in December. Although headline inflation recovered slightly and core inflation remained stagnant in October, The fact that there was no upside surprise leaves room for the Fed to make this further cut.analysts do not rule out a break in January. Even if inflation does not fall as quickly as desired and the economy remains strong, the cooling labor market and the fact that monetary policy remains tight gives the Fed room to move.There’s not much in the report that could change the Fed debate.“, says analyst Andreas Steno Larsen, formerly of Nordea.
