The consumer price index (CPI) data for October in the US was announced above expectations. While the CPI increased by 0.4 percent on a monthly basis, the median expectation of economists participating in the Bloomberg survey was 0.3 percent.
Core inflation, which excludes volatile items such as food and energy, also rose by 0.3 percent monthly. Market expectations were for a 0.2 percent increase in the core indicator.
In September, consumer prices had increased by 0.6 percent monthly and 3.6 percent on an annual basis. The US Bureau of Labor Statistics did not publish annual change rates due to the interruption of the data collection process during the government shutdown in October of last year.
The data was the last CPI report that officials will see before the US Federal Reserve (Fed) holds its policy meeting on December 8-9. In the markets, there is an expectation that the Fed may raise interest rates again as part of its fight against inflation, following a quarter-point hike in September and keeping rates steady in October.
Prior to the report, Fed Governor Christopher Waller had stated that if core CPI increased by 0.3 percent or more, the central bank might have to consider a larger half-point interest rate hike.
News Source: 12punto
