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Economists expect the U.S. Labor Department’s October inflation report, scheduled for release on Wednesday morning, to show that consumer prices rose less than in September, a sign that inflationary pressures have significantly eased since the summer.
Analysts surveyed by Dow Jones Newswires expect that the consumer price index, the government’s main yardstick for inflation, increased 0.1% in October after posting a 0.3% advance in September. Core prices, which exclude volatile food and energy costs, are forecast to have inched up 0.1% during the month.
If forecasts prove correct, it will be the 11th consecutive month in which inflation readings have fallen below the Federal Reserve’s 2% target. Year-over-year, consumer prices likely rose 1.4%, down from 1.5% in September, while core prices likely climbed 2%, unchanged from September.
Price growth has been slow to accelerate this year as the economy warms up due to uncertainty over the longer-term effects of the coronavirus pandemic and government stimulus being pulled back. The low inflation readings should keep the Fed on track to keep interest rates low for some time.