The high inflationary pressure in the US is falling more than expected.
The inflation rate for goods and services fell to 7.7 percent in October from 8.2 percent in September, the Labor Department said in Washington on Thursday.
Experts polled by Reuters had expected 8.0 percent.
It is already the fourth decline in a row and fuels hopes that inflation may have peaked.
Nevertheless, the inflation rate is still almost four times higher than the Fed's target.
The Federal Reserve has been raising interest rates in unusually large increments for months to keep inflation in check.
Most recently, she increased it again by three-quarters of a percentage point.
It is currently in a range of 3.75 to 4.00 percent.
The Fed is poised to step up but has signaled that it may soon slow down some of the pace of the tightening moves.
However, US monetary policy advisor Neel Kashkari called it “completely premature” to already be talking about a monetary policy turning point.