That was the inflation rate in October, a sign the economic recovery is far from over.
The Consumer Price Index didn’t change between September and October, the Bureau of Labor Statistics reported Thursday, as the fluctuation in prices for food, energy, health care, transportation, and other items netted out to zero amid sluggish demand from consumers operating in the COVID-19 pandemic.
The core inflation rate, which excludes food and energy prices, also slowed, dropping to 1.6% year-over-year. While lower prices are welcome by consumers, they’re not always a sign of economic health. To help restore maximum employment, the Federal Reserve is aiming for more inflation, not less, targeting a core inflation rate of more than 2%.