Economics
U.S. Core Inflation Unexpectedly Decelerates as Rents Cool
- Prices excluding food and energy rise 2.3% from year earlier
- Broader CPI up more than forecast as energy costs jump
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A key measure of U.S. consumer prices unexpectedly cooled in October despite fresh tariffs on Chinese goods, a sign price gains may be slow to reach the Federal Reserve’s target even after interest-rate cuts this year.
The core consumer price index, which excludes volatile food and energy costs, rose 2.3% from a year earlier, a Labor Department report showed Wednesday. That missed economist estimates, while the broader CPI climbed 0.4% and 1.8% annually, with both readings topping forecasts. The core measure was up 0.2% on the month, matching projections.