BREAKING Consumer inflation drops to 3.2 percent in October – edging closer to Federal Reserve’s 2 percent target

  • The latest inflation data indicated a decline of about half a percent to 3.2 percent
  • The Fed has tried to reduce inflation to 2 percent with high interest rates

Annual inflation fell to 3.2 percent in October – a positive sign that inflation is on its way down and that an era of relentless rate hikes could be over.

But figures released Wednesday by the U.S. Bureau of Labor Statistics showed that prices remained roughly stable on a monthly basis, between September and October.

The latest data is an indication that inflation is cooling after a monthly increase of 0.4 percent in September, and a promising sign for the Federal Reserve, which has tried to keep inflation in check with historic rate hikes.

Shelter costs continued to rise in October, offsetting a decline in the gasoline index.

Gasoline prices fell by 5.0 percent in October, reducing total energy costs by 2.5 percent.

Gasoline prices fell 5.0 percent in October, according to figures released Wednesday by the U.S. Bureau of Labor Statistics

Shoppers carry bags in San Francisco, California

Shoppers carry bags in San Francisco, California

This is a breaking news story. Updates are coming.