(Bloomberg) -- An underlying measure of US goods inflation posted its smallest annual advance last month since April 2021, while a gauge of services costs remained elevated.

Excluding food and energy, the price of merchandise rose 5.1% in October from a year ago, Labor Department data showed Thursday. That’s down from the 6.6% increase in the prior month and reflects a further softening in the indexes for bedroom furniture, clothing and used cars. In February, the core goods gauge hit a multi-decade high of 12.3%.

Core services inflation, which excludes energy services, was up 6.7% from a year ago and matched the fastest annual pace since 1982. The October figure was restrained by a monthly slide in medical care services.

Prices of goods -- everything from automobiles to household appliances -- surged during the pandemic as soaring demand collided with unprecedented supply chain disruptions. Now, it’s the prices of services -- like rent, pet care, hotel stays and dining out -- increasingly weighing on household budgets and drawing scrutiny from policymakers. 

Overall, Thursday’s consumer price index data showed an easing in price pressures, giving Federal Reserve officials room to slow down their steep interest-rate hikes designed to cool demand in the economy and ultimately reduce inflation.

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