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Inflation Cools

The Bureau of Labor Statistics reported that inflation sank to 3.2 percent in October over a year earlier, the lowest since July as energy prices continue to decline. "Core" inflation, minus food, and energy costs, dipped to 4 percent, down from 4.1 percent and the smallest increase since September 2021. On a month-over-month basis, inflation was nonexistent, while stripping out food and energy, prices rose 0.2 percent. Investors cheered the news as evidence that the Federal Reserve's campaign to stamp out inflation was working, sending stock prices soaring and U.S. Treasury bond yields tumbling.