United States Inflation Rate (Graph)
October consumer prices have been announced.
In August and September, the inflation rate was relatively restrained, but October jumped.
Next is the month-over-month core price index.
Next is the year-over-year core price index.
Clearly, the consumer price inflation rate is deviating from the past trend.
However, the Fed has said it focuses on the long-term trend of the personal consumption expenditures price index at 2%, not the consumer price index, which means following past trends would be far in the future even if it trends that way. The market watches the consumer price inflation with inflation worries, but the Fed might still say that rate hikes are far from over.
October's personal consumption expenditures price index has not been released yet.
Note that the difference between the consumer price index and the personal consumption expenditures price index is that the former covers what one pays, while the latter is broader and includes items one does not pay for directly (such as portions of medical costs covered by health insurance).
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