By Manuel Gutierrez, Consulting Economist to NKBA

 

Consumer prices fell to an annual rate of 7.7 percent in October from 8.2 percent in September, a hopeful sign that the Fed’s aggressive interest rate hikes may finally be working. Inflation was at its highest in June, at 9.1 percent.

 

  • The core inflation rate, which excludes volatile food and energy products, fell to 6.3 percent in October from 6.6 percent in September.
  • Housing Services edged 0.5 percent higher for the month, minimally outpacing the monthly rate of 0.4 percent for all products, and tracking slightly higher at 7.9 percent than overall inflation of 7.7 percent.
  • While still 1.9 percent higher YOY, Appliances actually fell by 1.2 percent in October from September. Meanwhile, Windows declined 1.2 percent, and Flooring dropped 1.4 percent from September.
  • Transportation Services continues to lead all categories with a 0.8 percent price hike from September, registering 15.3 percent higher than a year ago. Last month, however, the category’s YOY comparison was at 21 percent, compared to September 2021.
  • Food prices continue to batter consumers, climbing 0.6 percent for the month, although the annual rate fell to 10.9 percent from 11 percent.