In October 2024, the annual inflation rate in the US rose to 2.6%, up from 2.4% in September, which had been the lowest level since February 2021, aligning with market expectations.
US inflation accelerates in October
This marks the first increase in inflation in seven months. The uptick was driven by a slower decline in energy costs (-4.9% compared to -6.8%), particularly for gasoline (-12.2% vs -15.3%) and fuel oil (-20.8% vs -22.4%), while natural gas prices rose by 2%, consistent with the previous month. Meanwhile, inflation for shelter remained steady at 4.9%. Conversely, inflation eased for food (2.1% vs 2.3%) and transportation (8.2% vs 8.5%), with prices continuing to drop for new vehicles (-1.3%) and used cars and trucks (-3.4% vs -5.1%). On a month-to-month basis, the Consumer Price Index (CPI) increased by 0.2%, in line with the previous three months and market predictions. The shelter index rose by 0.4%, contributing to over half of the monthly increase. Core inflation held steady at 3.3%, as expected, with monthly core inflation remaining at 0.3%, unchanged from September.
