Your Money Matters: Inflation Rises In October Despite Federal Reserve Rate Cuts

Inflation rose 2.6% in October, according to the Consumer Price Index report released this week, marking a continued challenge despite Federal Reserve rate cuts aimed at cooling the economy.

Housing costs remain a key driver of inflation, with shelter prices increasing by 0.4% last month. Transportation costs also contributed to the rise, including higher airfares.

Car insurance premiums saw a sharp increase, up 14% year-over-year. For example, a $250 premium last year would now cost $285.

The Federal Reserve is targeting a 2% inflation rate but may face pressure to reevaluate its strategy, as the current inflation rate moves further from the goal. The Fed’s next meeting is set for Dec. 17.