Inflation Cools in October as Airfares and Used Cars Get Cheaper
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Annualized inflation dropped from 3.7% in September to 3.2% in October. Eleven spending categories got cheaper compared to a year earlier, the largest number since tracking began.
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Airfares and rental cars saw the biggest drops, signs the post-COVID travel boom is slowing. Used car prices also fell for the 12th straight month.
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Other categories with modest declines appliances, electronics, furniture, gasoline, household energy, medical care, school supplies, and toys.
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Food and housing costs are still rising significantly. Rents increased 7.2% year-over-year, hitting renters hard amid stagnant supply.
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Falling prices need to reach more staples to lift depressed consumer spirits. Confidence remains low despite job growth and GDP gains.