Editor’s Note: Dr. Michael Walden is a William Neal Reynolds Distinguished Professor Emeritus at North Carolina State University and a regular contributor to WRAL TechWire as well as WRAL News.
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RALEIGH – Today’s price inflation report for October was very positive. There was no change in the all-item inflation rate from September to October.
Also, the year-over-year rate for October was 3.2%, lower than the 3.7% for September’s year-over-year rate. Energy prices fell while shelter and food prices rose.
Mike Walden (NCSU photo)
The Federal Reserve will like this report, and it will be another reason for them to not further raise interest rates. The report is also in line with an emerging “soft landing,” where the inflation rate is moderated without causing a recession.
US-China talks
On a related matter, the upcoming meeting between President Biden and President Xi has implications for consumer prices in the US.
China’s economy has big problems. President Xi would like the US to lower tariffs on products the US imports from China. If the US agrees to this, it would moderate prices of many imports from China and save money for US consumers. But on the downside, it would discourage increased production of those products in the US.
