Year-on-year inflation for October was lower than expected in the United States

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The index was 7.7 percent, down from September, although high costs of living continue to affect many households in the North American country

October year-on-year inflation was lower than expected in the United States

A woman in a supermarket in Los Angeles, California (REUTERS/Lucy Nicholson/file)

The US consumer prices. cooled in October, according to government data released Thursday, better than experts had predicted and sparking Wall Street euphoria at the open.

TheConsumer Price Index (CPI), a key measure of inflation, increased 7.7 percent from October 2021, slowing the pace of September but still underscoring the high costs of living that have hit many American households.

The better-than-expected data sent Wall Street's main indices soaring: A few minutes after opening, the S&P rose 3.4%, the Dow Jones 2.25% and the Nasdaq technology index4.7%.

Also, the US dollar fell against major rival currencies. In afternoon trading, the dollar sank sharply against the pound, the euro and the yen.

Inflation data came a week after the sixth consecutive rise in interest rates decided by the Federal Reserve (FED< /b>) to control prices. It was three-quarters of a point and with it the official interest rate of the world's largest economy is currently in a range of between 3.75 and 4%, a level not seen since 2007. The president of the FED, Jerome Powell , had warned that possible future rate hikes and the end of them would depend on the evolution of data such as the CPI . Now, slowing inflation has dampened expectations of more aggressive rate hikes, which markets have welcomed.

October year-on-year inflation was lower than expected in the United States

Federal Reserve Chairman Jerome Powell (REUTERS/Elizabeth Frantz/file)

As for the data, the Bureau of Labor Statistics (BLS) indicated that the index of housing contributed more than half to the monthly increase in prices, and the gasoline and food indices also increased on a monthly basis.

Thus, the index of energy increased by 1.8% while that of food increased 0.6% .

On a year-on-year basis, in the last twelve months the energy index has increased by 17.6%, while food have become 10.9% more expensive in the last year.

The year-on-year data show that core inflation (which measures the rise in consumer prices excluding food and energy) was 6.3% in October.

In June, inflation reached its highest figure in forty years , 9.1%, although in July it fell six tenths to 8.5% and since then it has been falling slightly at a rate of one or two tenths each month, up to four registered now.

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