US inflation cools to lowest level since January

Inflation in the US eased in October as a measure of underlying consumer price pressures retreated from historic highs, sparking a rally on Wall Street as expectations firmed the Federal Reserve will downshift the pace of its rate increases next month.

The annual pace of the “headline” consumer price index slowed to its lowest since January, but traders zeroed in on signs of easing inflationary pressures in the “core” reading…