The personal consumption price index slowed in October, the inflation measure was flat from the previous month and fell from a year ago after the rise in service prices was offset by a decline in energy and goods prices.
Real gross domestic product increased at a faster than previously estimated annual pace after government spending and inventory investment were revised, offset by slower consumer spending.
New home sales in October softened from the previous month but soared from a year ago, despite mortgage rates rising to a two-decade high. The median and average home prices fell from the previous month and from a year ago.
The sale of previously owned homes in the U.S. declined in October from the previous month and from a year ago to the seasonally adjusted rate last seen in 2010.
Rate-setting committee members were of the opinion that inflation is still too high and wages are still rising at a faster pace than needed to support the decline in inflation to the target level of 2%.
October wholesale price inflation fell at the fastest pace since April 2020 after goods prices declined, but service prices were unchanged after rising for six consecutive months.
Retail and food services sales decreased from the previous month in October but rose from a year ago, and gasoline store sales and nonstore sales dropped at a faster pace.
Consumer price inflation in October weakened after the decline in crude oil prices dragged down the overall inflation rate, overwhelming the rise in shelter and transportation costs.
The Federal Reserve left its key short-term lending rate range unchanged for the second time in a row but left the door open for another rate hike to cool inflation to its target rate.
The U.S. economy accelerated its expansion in the third quarter to an annual pace not seen since the fourth quarter of 2021. Consumers accelerated spending following increases in real wages, a stock market rebound, and a jump in home prices.
Retail and food services sales, seasonally adjusted but not for inflation, edged higher in September from the previous month and from a year ago indicating resilient consumer spending despite high inflation and several rate hikes.
Consumer price inflation on an annual basis advanced in September and matched the pace in August and the increase in housing prices drove half of the inflation in the month. Core inflation dropped to the lowest level in two years.
