The Consumer Price Index (CPI), America's top measuring stick for consumer inflation, dropped to 3.2% in the 12-month period ending in October, down from 3.7% in September.
The Bureau of Labor Statistics (BLS) released the updated consumer price index Nov. 14.
The main reason inflation dropped was the cost of energy has declined 4.5% in the last year. Consumers spent an average of 5.3% less on gas in October 2023 in October 2022.
Inflation on food at the grocery store has cooled to near-normal levels. Food meant to be consumed at home has gone up 2.1% in the last year, according to the Bureau of Labor Statistics.
The cost of shelter is still climbing as prices for housing is up 6.7% from 2022.
The updated inflation numbers come two weeks after the Federal Reserve opted not to raise interest rates. But the Fed still has a goal to get inflation to an annualized rate of 2%.
CPI has fluctuated in the 3%-to-4% range for much of 2023 after topping 9% in 2022.
CPI weighs the costs of goods based on their importance. Items like food, shelter and energy tend to be weighted more heavily.
For working Americans, it's still a struggle to keep up with inflation, according to federal data. However, earnings slightly outpaced inflation over the last year.
A drop in average hours worked, though, means average weekly earnings have caused Americans' buying power to drop slightly, the BLS said. (Scripps Howard 11/14/23) Falling energy prices fuel drop in annual inflation rate (katc.com)
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