UPDATE - Annual US consumer inflation eases to 7.7% in October

UPDATES WITH PRESIDENT JOE BIDEN'S COMMENTS

By Ovunc Kutlu

ANKARA (AA) – Annual consumer inflation in the US came in at 7.7% in October, easing from the 8.2% yearly gain in September, according to official figures released on Thursday.

The consumer price index (CPI), which measures changes in the prices of goods and services from a consumer's perspective, came in lower than the market estimate of an 8% annual increase.

The figure is the smallest 12-month increase since the period ending January 2022, while it is a sharp decline from the 9.1% yearly gain in June, which was the largest 12-month increase since November 1981.

On a monthly basis, CPI in October rose 0.4% from the previous month, again coming below the market expectation of a 0.6% gain. CPI in September showed a monthly gain of 0.4%.

"The food index increased 0.6% in October following a 0.8% increase in September," the Labor Department said in a statement.

"The energy index increased 1.8% in October after falling in the preceding three months. The gasoline index rose 4.0% over the month, also following three consecutive declines," it added.

Core CPI, which excludes food and energy, gained 0.3% in October from the previous month, again below the market expectation for a 0.5% rise. In September, core CPI also posted a monthly increase of 0.6%.

Annually, core CPI rose 6.3% in October, coming below the market estimate of a 6.5% gain, while it rose 6.6% in September year-on-year.

"The energy index increased 17.6% for the 12 months ending October, and the food index increased 10.9% over the last year; all of these increases were smaller than for the period ending September," the statement said.

President Joe Biden said the latest consumer price figure shows that his administration is making progress on bringing inflation down, without giving up all of the progress made on economic growth and job creation.

"It will take time to get inflation back to normal levels – and we could see setbacks along the way – but we will keep at it and help families with the cost of living," he said in a statement.

He noted that Americans are paying around $1.20 less per gallon (3.78 liters) of gasoline at the pump, compared to this summer, and added that his administration plans to bring down prescription drug prices and energy costs in less than eight weeks.

Biden stressed that additional measures that will take effect soon will help the progress of getting inflation under control.