October saw prices remain steady, as inflation continued to weaken. The Consumer Price Index (CPI) released by the U.S. Bureau of Labor Statistics (BLS) showed that overall consumer prices declined by 0.1% from September.
Further, core prices, which exclude the volatile costs of food and energy, rose just 0.2%. This is significantly lower than the 2.4% increase experienced just one year ago in October 2018.
The slowing of inflation is welcome news for many Americans who have seen prices continue to climb. It can also be seen as a testament to the strength of the U.S. economy. Inflation has effectively been held in check due to the Federal Reserve and its efforts to keep interest rates low.
The slower prices are likely a result of the enduring trade war between the U.S. and China, as tariffs continue to put downward pressure on the cost of goods. Additionally, as the economy slows, companies are having to pass on more of their lower production costs in order to attract customers.
For now, prices appear to be leveling off, providing some relief for consumers. However, if the situation worsens, further declines could be expected.
In the coming months, we will be closely watching to see if prices remain steady or if inflation returns to pre-October levels. It seems likely that prices in the U.S. will remain in check for the foreseeable future, making it possible for consumers to enjoy some financial relief.