**U.S. inflation slowed in October to its lowest level since January, offering hope that the Federal Reserve’s aggressive interest rate hikes are starting to tame price increases.**
The consumer price index, a broad measure of the cost of goods and services, rose 7.7% from a year earlier, down from 8.2% in September, the Labor Department reported Thursday. The core CPI, which excludes volatile food and energy prices, increased 6.3% over the past 12 months, also down from 6.6% in September.
The slowdown in inflation was driven by a sharp decline in gasoline prices, which fell 4.9% in October. Energy costs overall fell 4.6%, the first monthly decline since April. But food prices continued to rise, with the food index increasing 0.6% in October and 10.9% over the past year.
The Fed has raised interest rates six times this year in an effort to bring inflation down to its 2% target. The central bank is expected to continue raising rates at its next meeting in December, but the pace of hikes could slow as inflation shows signs of cooling.
The latest inflation data is a welcome sign for the Biden administration, which has been under pressure to address the issue. President Biden said in a statement that the report shows that .
