Inflation Report: October's Inflation Numbers

Despite a small monthly increase in inflation, yearly inflation slowed.

By Nate Griffin — Thursday, November 10th, 2022

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The Bureau of Labor Statistics released its latest data from the Consumer Price Index (CPI) Today. The index is based on prices collected in 75 urban areas each month and reflects the expenditures of about 93 percent of US consumers. The CPI rose by .4 percent from the previous month and increased 7.7 percent from the previous October of 2021.

Though most prices increased by less than 1 percent from the previous month, energy prices rose much faster. gasoline was up 4 percent and fuel oil was up 19.8 percent from the previous month, though natural gas prices decreased by 4.6 percent. The decline occurred despite many homes throughout the country firing up their home heating equipment.

Several categories remain notably elevated from the previous year including energy, new cars, and food.

Though a nearly 8 percent yearly over year increase in overall price levels is much higher than the 2 percent target that we are used to, the leveling off of monthly inflation shows that the Fed's tightening policy, which has dramatically increased interest rates this year, is beginning to have an effect on prices.

However, despite the positive inflation news, the Fed is expected to continue to raise the target Fed Funds Rate by 50 basis points in December.