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Published: Nov 10, 2022 5 min read

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After several months of hotter-than-expected inflation numbers, it’s nice to finally see the latest report come in cooler than anticipated. The markets certainly seemed to welcome the latest inflation report: Stocks roared ahead with massive gains early on Thursday.

For the year ending in October, the inflation rate was 7.7%, the Department of Labor said Thursday. The annual inflation rate for the previous month was 8.2%, and recent projections pegged October’s rate at 7.9%. Overall prices for consumers rose by 0.4% from September to October. This monthly rate was also lower than the forecasted rate of about 0.6%.

While the latest report signals a cooling in inflation, many prices for consumers remain stubbornly high. Gasoline prices, for example, are up 17.5% compared to last October, while groceries are 12.4% more expensive.

“This morning’s CPI [Consumer Price Index] data were a welcome relief, but there is still a long way to go,” Lorie Logan, the president of the Dallas Federal Reserve, said at a speech Thursday morning.

The Federal Reserve, the U.S.’s central banking system, has acted aggressively to curb inflation in 2022, despite the risk of driving the overall economy into a recession. So far, it has raised interest rates six times and signaled more increases are on the horizon until inflation comes down to about 2%, which is the Fed’s preferred rate.