Analysts are expecting the October inflation report, due to be released later this week, to show that consumer prices rose at a slower pace in October than the previous month. The US Labor Department is expected to release the report on Wednesday morning, and economists are expecting the Consumer Price Index (CPI) to come in at 0.3% for the month, down from 0.4% in September.
If the forecasts are correct, this will mark the second consecutive month of slowing consumer prices, following an August that saw prices jump by 0.8%. The dip is largely due to lower gasoline prices, which analysts expect to fall to a 16-month low.
The report is also expected to show a decrease in the so-called “core” CPI, which strips out volatile food and energy prices. Core CPI is expected to come in at 0.2%, down from 0.3% in September, as well as a year-over-year rate of 2.2%, down from 2.3%.
Should the report show slower consumer price growth, it could be a signal that inflationary pressures are easing, which could be a positive sign for the economy. The Federal Reserve is closely watching inflation data as it prepares to make a decision of whether or not to raise interest rates for the first time in nearly a decade. While the Fed has not stated that the October inflation report will be a factor in its decision, it is expected to be closely watched by policy-makers.