Tired of high prices? Here’s what’s going on with inflation: NPR

By the numbers, American inflation is moving in the same direction, easing significantly but still sticky.

Consumer prices rose 2.6% last month from a year earlier, according to data released Wednesday. This was slightly higher than the 2.4% annualized rise seen in September, but overall inflation remains well below its 2022 peak.

That should be good news, but it was of little consolation to many Americans.

That’s because, as this year’s elections made clear, prices remain significantly higher than before the pandemic, leaving many voters dissatisfied.

Here’s what you need to know about the state of American inflation.

Inflation is easing, but problems remain

Although inflation has eased, it still hurts the pockets of many Americans.

A house is a big thing. The housing cost index, a broad measure of the rental market, continues to rise, and so do other necessities such as health care.

However, prices fell on some items, including gasoline prices.

But overall the price is still high

Prices may not be rising as much anymore, but they are still very high even after rising for several months.

People who said inflation was the most important factor in this year’s election were nearly twice as likely to support Donald J. Trump over Vice President Kamala Harris, according to an Associated Press poll.

An NBC News analysis found that counties with the most difficult housing markets saw the biggest shifts in median prices toward Trump.

High prices are putting pressure on Americans

But Trump voters weren’t the only ones complaining about high prices.

Alex Spangler, 38, of Westminster, Colorado, a suburb of Denver, voted for Harris even though he is not impressed with either party.

Spangler says she and her partner have a hard time saving money because they pay so much for groceries and other necessities, leaving little room for emergencies.

Spangler says just a trip to the supermarket regularly costs her and her partner $20 to $50.

“We both make decent wages, but with inflation going up, it’s hard to imagine that our money won’t go as far,” said Spangler, who helps manage Boost Mobile’s device launches. I feel that way,” he says.

Spangler said she and her partner don’t buy many “luxury things” and don’t go out much because they spend so much money on groceries.

“Despite the fact that inflation has leveled off, prices have increased and remain so, so they still affect our salaries on a regular basis,” she says.

And that left Mr. Spangler disillusioned with the future.

“Honestly, this puts a huge damper on our outlook for the next few years,” she says.

President Trump could make inflation worse, not better.

During his campaign, Trump promised to curb inflation and lower prices.

But many economists predict that President Trump’s economic policies could cause inflation to rise.

President Trump has promised widespread tariffs that could lead to higher prices for consumers. Meanwhile, his pledges to cut taxes and deport illegal immigrants could also cause further inflation.

“I think a lot of the policy proposals that have been touted so far are generally pointing in the direction of inflation,” said Sarah House, senior economist at Wells Fargo.

The Fed could be in a tough position

Rising inflation could put the Fed in a difficult situation.

The Fed began cutting interest rates in September in response to easing inflation, and economists still expect policymakers to continue lowering rates at next month’s policy meeting.

However, if President Trump implements his economic policy plans and causes further inflation, the Fed may have to pause or reduce the rate of cuts starting next year.

The Fed’s leadership has also been called into question. Current Federal Reserve Chairman Jerome Powell’s term ends in 2026, but given the rivalry between the two during the next president’s first term, it is possible that Mr. Trump will choose Mr. Powell’s successor.