US inflation is forecast to have resumed its downward trend in October, falling for the first time in three months in what would be an encouraging sign for the Federal Reserve.
Consumer prices are expected to have risen 3.3 per cent year on year in October, according to economists surveyed by LSEG, down from an annual rate of 3.7 per cent in September. Prices are predicted to have inched up 0.1 per cent month on month, which if accurate would be the smallest increase since May.
Such a decline would be welcome news for policymakers at the Fed after surging energy prices drove up headline inflation over the summer. The central bank held its benchmark interest rate steady at a 22-year high earlier this month, and investors have become increasingly confident that rates have peaked.