US CPI Rises Following Trump's Re-election

In October, the U.S. Consumer Price Index (CPI) increased by 2.6% compared to the previous year, matching economists' expectations and marking a slight uptick from September's 2.4% increase. Core inflation, which excludes volatile food and energy prices, maintained a steady annual growth of 3.3%. The updated inflation data comes shortly after Donald Trump's re-election, contributing to economic uncertainty with potential policy changes such as increased tariffs and mass deportations that could exacerbate inflation. While gasoline prices fell significantly, food prices grew by 2.1% with notable increases in eggs and restaurant meals. The Federal Reserve's response remains uncertain, although recent trends have led to interest rate cuts as inflation moderates from its 2022 peak of 9%. The October inflation data may influence the Fed's decision on further rate cuts in December, with markets anticipating mixed outcomes due to these economic developments.