- by theguardian
- 02 Feb 2023
In a speech to the Brookings Institution, Powell said that the Fed may increase its key interest rate by a smaller increment at its December meeting, only a half-point, after four straight three-quarter point hikes.
But Powell also stressed that the smaller hike should not be taken as a sign the Fed will let up on its inflation fight anytime soon.
The consumer prices index (CPI) fell across the 19-member euro currency bloc to 10% in October from 10.6% in the previous month.
Marking the first fall for 17 months, the Eurostat figures wrong-footed financial analysts, who expected inflation to slide only modestly to 10.4%.
Economists are expected to now anticipate a policy shift by the ECB to smaller interest rate rises when members of its governing council meet next month, though they are likely to come under pressure from politicians in Germany, shocked by the arrival of double-digit annual price rises, to bring down inflation more quickly.
German inflation fell from 11.6% to 11.3% while France, which has capped price rises by state-owned energy firms, found inflation was flat at 7.1%.
The falls come amid signs that global supply chains have unblocked and inflationary pressures have eased. Wholesale energy prices, commodities like timber and food costs have begun to tumble, bringing down consumer prices.