Is the Inflation Rate Finally Cooling Off in October 2024?

Good news is emerging on the inflation front in October 2024. In the U.S., inflation rates have been cooling off after a prolonged period of price hikes. This is a positive signal for consumers, especially as the Federal Reserve hints at potentially lowering interest rates, which could reduce borrowing costs in the near future.

Across the Atlantic, the UK is also seeing encouraging trends. Inflation has dropped to its lowest in nearly two years, and for the first time in a while, wages are growing faster than inflation. This means people are starting to feel the benefits as their real earnings improve.

While prices may not drop as quickly as inflation does—especially for products with high labor costs—overall, the trend is moving in the right direction, offering some financial relief after years of rising prices.

Sources:

• Marketplace - https://www.marketplace.org/2024/10/03/prices-dropping-inflation-cools-interest-rates-lower/

• Capital Economics - https://www.capitaleconomics.com/publications/uk-economics-weekly/good-news-inflation-should-continue-2024