Inflation progress stalls in US in October

Price increases in the US picked up last month, as progress toward stabilising prices appeared to stall.

Consumer prices rose 2.6% over the 12 months to October, the Labor Department said.

That marked a slight uptick from 2.4% the month before, as housing and food costs marched higher.

The latest figures added to speculation that the US central bank might not lower rates as much as had been expected in the months ahead.

The Federal Reserve wants to see inflation, the rate at which prices rise, fall back to about 2%.

It started cutting interest rates in September, noting the significant improvement since June 2022, when prices were surging at a rate of more than 9%.

But analysts are warning of new risks, as President-elect Donald Trump promises a mix of tax cuts, tariffs and migrant deportations that some say are likely to keep pressure mounting on businesses and consumers.