Inflation, the persistent increase in price of goods and services, can be an economic indicator for various countries, including the United States. Economists often look to the data from the Commerce Department’s Bureau of Labor Statistics (BLS) in order to learn more about how the economy is doing and how it may affect inflation.
The October inflation report from the BLS is expected to show a slower rate of price growth compared to earlier months. This is most likely due to the increased pressure on the US economy from the global pandemic. While the overall unemployment rate has stabilized, job losses in different sectors have left many individuals without income for extended periods of time.
This lack of income makes it difficult to keep up with rising costs, leading to a decrease in overall consumer spending. This decrease in spending affects all aspects of the economy, including the prices of goods and services. The October inflation report is expected to reflect this decrease in spending, with consumer prices dropping more than 0.2 percent from September.
Despite the expected drop in the October inflation report, economists believe that prices will ultimately continue to rise over time. Inflation in the US is currently still below the target set by the Federal Reserve of 2 percent. However, there are several factors that could lead to a resurgence in prices. One of those factors is the effects of the US-China trade war, which has been a major factor in the global economic slowdown.
Overall, the October inflation report will provide economists with valuable insight into the current state of inflation in the US economy. While the report is likely to show a decrease in price growth, it is likely to be short-lived as the global economy continues to recover. In the meantime, economists will be watching the report closely to help them better understand how inflation may affect the US economy in the coming months.