11.11.22
The Consumer Price Index (CPI), released November 10, surprised analysts who had expected the annualized inflation rate to go to 7.9%, down from 8.2% in September. Instead, October’s CPI reported a 7.7% rate. The core index, minus the volatile fuel and food prices, decelerated to 6.3%, down from 6.6% last month with both rent and used car prices beginning to moderate. The report brings the first significant drop-off in price increases and signals that the Fed rate increases may be having the desired effect of slowing inflation and could bring even greater moderation in 2023. Markets responded with a jump in stocks in early trading.