US inflation figures remained flat for October at 1.7 percent, yet economists believe that underlying pressures are beginning to push upwards.
Falling fuel prices restrained interest rates last month despite rising accommodation and health care costs.In addition there were price hikes for airline tickets, new motor cars, tobacco and household furnishings.
The US is operating against the backdrop of a slowing global economy, and a strengthening dollar, which is keeping inflation below the US central bank’s target, set at 2 percent.
The Eurozone is inflation rate is running at 0.4 percent.
However, there is concern over falling market-based inflation expectations, with some economist warning that they should be monitored for signs of “a possible downward shift in longer-term inflation expectations.”