Inflation & Prices

Powell’s ‘Most Important’ Inflation Indicator Is Cooling Down

A commuter carries shopping bags on Market Street in San Francisco.

Photographer: David Paul Morris/Bloomberg
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A measure of US inflation flagged by Federal Reserve Chair Jerome Powell as perhaps the “most important” guide to the outlook posted a slowdown last month, according to Commerce Department data published Thursday.

Prices of services excluding housing and energy services rose 0.3% in October, the smallest increase in three months, and down from a 0.5% jump in September.