|By the numbers:
- Housing was up 6.7% annually.
- Energy prices fell 4.5% annually because of a 5.3% drop in gas prices. Electricity rose 2.4%.
- New car prices rose 1.9% annually, but used car prices fell 7.1%.
- Grocery prices rose 0.3% in October and are up 2.1% annually.
Be smart: Core prices, which strips out volatile elements like food and energy and is closely watched by the Fed, rose 4.0% annually and 0.2% from September to October.
Looking ahead: This report is a step in the right direction, but we are still far from the Fed’s 2% inflation target. This improvement likely means the Fed will hold off on interest rate hikes at least until early 2024.