Consumer prices ticked up in October, marking a slight rise after September’s 3½-year low, showing an uneven path for inflation.
Despite the bump, the increase likely won’t deter the Federal Reserve from a possible December interest-rate cut.
The Labor Department reported consumer prices were up 2.6% from a year ago, with core inflation, excluding food and energy, up 3.3%.
Steady consumer spending and hiring may fuel debate on slowing rate cuts early next year.
Investors welcomed the report, betting on a quarter-point rate cut in December.
This response reflects confidence that President-Elect Trump and the Fed will avoid early policy clashes, despite Trump’s pro-lower-rate stance.
