Inflation in the US took the month off in October. From marketplace, I'm

Sabrie Beneshore, in for David Brancaccio. On average, prices in the US did not

rise between September and October.

Now, if you compare with a year earlier, prices were up 3.2 percent, but that is still a significant

slowdown.

Jeffrey Cleveland is chief economist at Paiden and Reg Regal and joins us to talk about it.

Hi Jeffrey.

Good morning.

So let's just go through these numbers first real quick.

Overall inflation was zero month to month, but sometimes these inflation numbers are all you know gas prices moving or some other

quirky thing happening in the economy do we have anything like that going on this time

well we like to look at core inflation so we exclude food and energy prices which can be volatile but even if you

look at core inflation is a good story here poor inflation was up 0.2% month to month

a little softer than the market expected and a little slower than the prior month.

The prior month was 0.3.

This is a overall good story about the underlying inflation problem in the US cooling off.

Yeah, and this slowdown in inflation is happening at a time when the economy is doing really quite well.

Usually we pay an economic price for getting inflation under control.

Almost every single time where inflation was elevated, the process to seeing lower inflation or slower inflation was higher unemployment.

And right now the unemployment rate is still below 4% and inflation has cooled off a lot.

And I think it's a great scenario for the average American.

Why is that?

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