Inflation edges up slightly, but not enough to cause major concerns
November 14, 2024 Executive InsightsMake Your Move Easy
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Get StartedInflation ticked up in October, but in line with forecasts. And that means a December rate cut by the Federal Reserve could still be in the offing.
The Consumer Price Index (CPI) increased 0.2% in October, the same increase as the previous three months, according to the U.S. Bureau of Labor Statistics. The price of all goods increased 2.6% year over year.
“Both headline CPI and core CPI were right in line with forecasts, potentially supporting an additional 25-basis point federal funds rate cut in December, barring any upside surprises in November payrolls data,” said Sam Williamson, First American’s senior economist, in a statement.
The index for shelter rose 0.4% in October, accounting for over half of the monthly all items increase. The food index also increased over the month, rising 0.2% as the food at home index increased 0.1% and the food away from home index rose 0.2%. The energy index was unchanged over the month, after declining 1.9% in September.
Americans are still feeling the pinch of inflation, but not nearly as much as a year ago, said Gabe Abshire, CEO of Move Concierge, in a statement. With the rate cuts and inflation taming, next year could still be a busy homebuying year.
“As we move into the holiday spending season, we anticipate strong retail sales and a slow winter home buying season,” Abshire said. “However, with an additional interest rate cut expected, more and more people will be looking to move in the first quarter of 2025.”
