By OXShare

In October, the inflation rate in the United States decreased more than anticipated, which is positive news for Federal Reserve officials who are focused on controlling rising prices in the largest global economy.

In October, the U.S. consumer price index (CPI) from the Labor Department increased by 3.2% compared to the previous year, which is slower than the 3.7% growth in September. This decrease was mainly caused by a drop in gas prices. It was the first time in three months that the yearly reading had declined. On a monthly basis, the CPI remained the same, compared to a slight increase of 0.4% previously.

Economists had observed the numbers at a yearly rate of 3.3% and a monthly rate of 0.1% compared to the previous month.

Returning inflation to the Federal Reserve’s desired rate of 2% has been the primary goal of several consecutive increases in interest rates by the central bank. This implies that policymakers will probably embrace a fresh decrease in the pace of price growth.

The Core CPI, which does not include food and energy, increased by 4.0% on a yearly basis and 0.2% on a monthly basis. Even though this growth rate was lower than what was expected, it indicates that there is still some sustained inflation, which is a concern for policymakers who believe that interest rates may not be high enough to control price growth and keep it at 2%.

Chair Jerome Powell stated last week that the Federal Reserve will not hesitate to increase borrowing costs beyond the current range of 5.25% to 5.50% if it is deemed necessary. The Federal Reserve, which maintained interest rates at their previous meeting, is planning to convene for its next two-day meeting on December 12–13.

After the release of the information on Tuesday, stock futures in the United States saw a significant increase, whereas Treasury yields, which generally have an opposite relationship with prices, experienced a slight decline.