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Annual Inflation Hits Fed Target in New England, Still Above 4% in the South
- Inflation slowed across the US in October, with annual inflation in the New England region now at the Federal Reserve’s 2% target.
- The states in the East North Central region, including Illinois, Indiana, and Ohio, have also seen significant cooling, with consumer prices rising 2.5% from a year earlier.
- Inflation remains above 4% in parts of the South, including Alabama, Kentucky, Mississippi, and Tennessee.
- The South Atlantic region, including Maryland, Virginia, and Washington D.C., is also experiencing high inflation at 3.9%.
- Overall, inflation remains higher in poorer states than in wealthier states.
- According to the Philadelphia Fed’s Survey of Professional Forecasters, the median forecast for CPI inflation is 2.6% over the next five years and 2.4% over the next decade.
- Whereas the bond market suggests a slightly lower expectation of 2.3% annual inflation for the next five years and 2.36% over the next decade.
Source: Helios Quantitative Research, Bloomberg, Bureau of Labor Statistics, Federal Reserve Bank of Philadelphia