Inflation Cools in October as Gas Prices Drop, Offering Relief to Consumers
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Inflation cooled in October as falling gas prices helped offset rising rents. Overall consumer prices rose just 3.2% from a year ago.
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Gas prices dropped 5% in October and could fall another 10 cents/gallon by Thanksgiving, helping holiday travelers.
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Airfares and hotel room rates also dropped in October, thanks to lower fuel prices.
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Core inflation, excluding food and energy, rose 4% in the past year - the smallest increase in over 2 years.
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Investors rallied on the inflation news, betting the Fed may stop raising interest rates soon. The Dow gained nearly 500 points.