U.S. CPI rose as expected in October and may lead to smaller Fed rate cuts next year

On Nov. 13, the U.S. consumer price index rose as expected in October and the pace of progress toward low inflation has slowed since mid-year, which could lead to a smaller rate cut by the Federal Reserve next year. The data showed that the U.S. unquartered CPI for October recorded an annual rate of 2.6% and a monthly rate of 0.2%. Dissatisfaction with inflation helped U.S. Republican Donald Trump win last week's presidential election, defeating Democratic candidate and Vice President Harris. However, economists predict that inflation will rise next year if Trump continues his economic policies, including tax cuts and higher tariffs on imported goods. In addition, Trump has vowed to massively deport illegal immigrants, which economists say will reduce the labor supply and increase costs for businesses, which will then be passed on to consumers. Although the Fed is expected to cut interest rates again in December, economists see limited room for further cuts next year.