FILE – A salesman talks with customers at an Acura dealer in Wexford, Pa., on Sept. 29, 2022. The Federal Reserve may reach a turning point this week as it announces what’s expected to be another substantial three-quarter-point hike in its key interest rate. The Fed’s hikes have already led to much costlier borrowing rates, ranging from mortgages to auto and business loans. (AP Photo/Gene J. Puskar, File)
By PAUL WISEMAN AP Economics Writer
WASHINGTON (AP) — Price increases moderated in the United States last month in the latest sign that the inflation pressures that have gripped the nation might be easing as the economy slows and consumers grow more cautious. Consumer inflation reached 7.7% in October from a year earlier and 0.4% from September. The year-over-year increase, a slowdown from 8.2% in September, was the smallest rise since January. A measure called core inflation, which excludes volatile food and energy, rose 6.3% in the past 12 months and 0.3% from September. The numbers were all lower than economists had expected, and they raised the possibility that the Federal Reserve could decide to slow its interest rate hikes.