Inflation has been stubborn in recent months. Now, President-elect Donald J. Trump’s tariffs loom as a potential risk.The New York Times reports that inflation has been stubborn in recent months and now President-elect Donald J. Trump’s tariffs pose a potential risk. The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures index, increased by 2.3 percent in October, up from 2.1 percent in September. This development is likely to keep central bankers cautious as they consider the future of interest rates. The core index, which excludes volatile food and fuel costs, also rose by 2.8 percent from a year earlier. In addition, the overall index rose by 0.2 percent and the core index by 0.3 percent from September, in line with economist expectations. This suggests that inflation has remained steady after months of progress, although it is still slightly higher than the Fed’s target of 2 percent. According to Matthew Luzzetti, chief U.S. economist at Deutsche Bank, this report highlights the fact that inflation progress has stalled. While price increases are lower than their peak in 2022, they are still higher than desired. This emphasizes the need for caution and careful monitoring of inflation data.
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