Prices held steady in October as inflation slowed further. Inflation decreased for the third month in a row in October, according to the latest figures released by the Bureau of Labor Statistics.
The Consumer Price Index, a measure of inflation, declined 0.1 percent in October, following a 0.2 percent drop in September. The index, which measures the cost of goods and services, has not increased since June.
The decrease was driven by declines in gasoline, energy, and a record-breaking drop in apparel prices. The apparel index fell by 2.3 percent, the largest drop since the BLS started tracking that index in 1979.
Despite the drop in prices, economists do not expect inflation to remain subdued for long. As the economy continues to recover, producers may have difficulty keeping up with the demand for goods and services, which could lead to inflationary pressures.
Analysts believe that prices will likely pick up in the months ahead, as demand increases and producers have more flexibility to raise prices. This could be tempered by the Fed’s low interest rate policy, which could help to keep a lid on inflation.
Inflation remains below pre-pandemic levels. The index was up 1.2 percent in October compared to a year ago, compared to 2.4 percent in January.
Inflation has not been a major concern, but it is something that the Federal Reserve will be watching as they assess the economic outlook. While the Fed expects inflation to remain subdued, if it starts picking up, the Fed may adjust their policy stance in order to keep it in check.