CPI report shows inflation may be starting to cool

Columns on Federal Reserve
(Image credit: Lance Nelson/Getty Images)

The latest consumer price index report (CPI), released Thursday, showed that inflation is starting to cool. CNBC reports that the CPI increased by 0.4 percent this month and 7.7 percent since last year, less than the predicted growth of 0.6 percent and 7.9 percent, respectively.

This is the lowest annual inflation reading since January, per CNN. In response, the Dow Jones Industrial Average increased by over 800 points and the S&P 500 opened with a gain of 3.6 percent. This reflected hopes that the Federal Reserve would cut back on raising interest rates. "The report provides ammunition for the Fed to begin pricing in sub-75-basis-point tightening," explained Eric Merlis of Citizens.

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Devika Rao, The Week US

 Devika Rao has worked as a staff writer at The Week since 2022, covering science, the environment, climate and business. She previously worked as a policy associate for a nonprofit organization advocating for environmental action from a business perspective.