FOR IMMEDIATE RELEASE
November 10, 2022
Credit Union National Association (CUNA) Senior Economist Dawit Kebede, PhD, issued the following statement in response to the Labor Department’s October Consumer Price Index Report:
“The Consumer Price Index (CPI) rose 7.7% relative to a year ago. This is the lowest increase for the year as prices for used cars, air travel, and medical care declined in October. The increase in core-CPI (prices excluding food and energy) also slowed down from 0.6% in September to 0.3%. CUNA forecasts inflation by year-end will be 7.5%.
“Housing price contributed for over half of the 0.4% increase in overall monthly prices. If housing remained flat compared to September, the annualized October inflation would have been lower than 2.4%. There is a lag of up to 18 months between current market price and the CPI for housing. The CPI reflects increases from a few months ago but current market price for housing is cooling down.
“Overall, the October inflation report shows signs of prices slowing down. A 7.7% headline inflation is still much higher than the Federal Reserve's target. Hence, the Fed may raise interest rates by 50 basis points in December.”
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 130 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.