US October CPI Exceeds Expectations Across the Board, Hitting Waller's Threshold for a Larger Rate Hike

Odaily: US headline and core inflation both rose more than expected in October on a monthly basis, which may keep the Federal Reserve on track to raise interest rates next month. According to Labor Bureau data released on Tuesday, the consumer price index excluding food and energy rose 0.3% from the previous month. The overall price index rose 0.4%. Because data collection was disrupted during last October's government shutdown, the Labor Bureau did not release year-over-year changes. The report shows that price pressures continued to build ahead of this month's midterm elections, in which Democrats focused heavily on the cost of living and retook both chambers of Congress. This year, the Iran war, tariffs, and the data center boom have all fueled inflation. This is the last CPI report Fed officials will see before their December 8-9 policy meeting. Investors expect them to raise rates at that meeting to address inflation.

Ahead of the release, Fed Governor Waller said that if core CPI rose 0.3% or more, the Fed might need to raise rates by 50 basis points. (Jinshi)