Inflation cooled down in October as prices stayed flat from September, according to the latest data released by the Bureau of Labor Statistics. The Consumer Price Index didn't change from September, rising by 0%, marking the first time inflation was flat since July 2022. Year-over-year CPI rose 3.2% in October, down from 3.7% in September.
Energy prices were lower in October as the price of oil dropped, resulting in a 5% decrease in gasoline prices.
After the report, many economists seemed optimistic that the Federal Reserve would not raise interest rates, with some suggesting it could be a sign of rate cuts next year.
"This is the CPI report that is going to trigger serious talk about potential rate cuts in the first six months of next year," said Sonu Varghese, global market strategist at Carson Group, according to CNBC.
The stock market reacted positively to the report as the Dow Futures increased by 377 points. The S&P 500 futures were up by 1.4%, and the Nasdaq-100 futures rose by 1.7%.