. The consumer price index (CPI) rose only 0.2%, the lowest rate this year. Core inflation, which strips out more volatile items such as energy and food, was even lower at 0.1%.
The slowdown in inflation was supported by weak economic growth. In October, the gross domestic product (GDP) rose just 0.7% compared to the previous quarter. That’s the slowest pace of economic growth since the fourth quarter of 2018.
Analysts said low inflation reflected weak spending in the economy. Consumers pulled back on spending in October due to uncertain economic conditions and employment concerns. In addition, businesses have continued to invest cautiously as they wait for more clarity on international trade policy.
Inflation is unlikely to pick up any time soon. The Federal Reserve cut interest rates three times this year to stimulate the economy, and it’s unlikely to raise them anytime soon. As a result, prices are likely to remain steady or even edge lower in the coming months.