Inflation Ticks Up Despite Slowdown In Jobs Market

Inflation roseslightly in October despite a massive slowdown in job growth in the same month, according to a Bureau of Labor Statistics (BLS) report released Wednesday.

The consumer price index (CPI), a measure of the price of everyday goods, increased 0.2% on an annual basis in October and rose 2.6% month-over-month, compared to 2.4% in September, and in line with expectations, according to the BLS. Core CPI rose 3.3% year-over-year in October, the same rate as in September.

The Federal Reserve on Thursday decided to cut the federal funds rate range by 0.25% due to a declining rate of inflation and slowing employment gains in an effort to boost the U.S. economy. The decision followed a September rate cut of 0.5%, which marked the first cut since March 2020 and the first change to Fed policy since July 2023.

The U.S. added fewer new jobs last month than the 110,000 that were expected, with just 12,000nonfarm payroll positions being announced in October, while the unemployment rate remained at 4.1%. Gross domestic product grew