The annual inflation rate moved higher last month for the first time since March, as expected. Still, economists say the underlying trend remains favorable for another round of interest rate cuts.Consumer prices rose 0.2% last month and were up 2.6% from the year before, according to the latest Consumer Price Index data released Wednesday by the Bureau of Labor Statistics.Housing-related inflation accounted for half of the monthly rise, and energy prices were flat after dragging down the overall index for four of the past six months. The Consumer Price Index measures price changes across commonly purchased goods and services.Inflation has eased considerably since peaking at 9.1% in June 2022 and has steadily cooled.Still, Octobers increase was to be expected, due to unfavorable comparisons from a year ago and stubborn housing-related inflation. Consensus estimates were for a 0.2% monthly increase and a 2.6% annual increase in the overall CPI, according to FactSet.The last quarter of 2023 was really great for (progress on) inflation; and in order for the year over year rate to basically fall, you need to have something thats even better than that, Stephen Juneau, a Bank of America economist, told CNN in an interview Wednesday. The bigger story on inflation is that, yes, prices are still going up, but the rate at which theyre going up has declined significantly.While it appeared that progress on reining in price hikes backtracked a bit, Wednesdays report also underscored that the last mile of taming inflation will be a slog.Excluding food and energy, two categories that can be quite volatile, core CPI rose 0.3% for the month and 3.3% from the year before, the same increases seen in September.With underlying inflation holding the line and not showing an acceleration, that leaves the Federal Reserve on track to cut rates further in December, Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management, said in a statement.The markets appeared to agree: Projections for a quarter-point cut jolted higher Wednesday to 82% from 58.7%, according to the CME FedWatch Tool.While the central bank has started to loosen monetary policy from its restrictive vice grip of the past two and a half years, Fed Chair Jerome Powell last week noted that the jobs not done on inflation.Plenty of risks remain, including volatility in the Middle East, still-strong consumer demand, and President-elect Donald Trumps floated plans to hike tariffs and conduct mass deportations.If [Trump] carries through on what he said during his campaign, there will be an inflation shock significantly greater than the one the country suffered in 2021, economist Larry Summers said Wednesday in an interview with Kate Bolduan on CNN News Central.