US October CPI Beats Expectations Across the Board, Reaching the Large Rate-Hike Threshold Mentioned by Waller

深潮 TechFlow reported on November 10 that both the overall and core monthly inflation rates for the US in October exceeded expectations, which could keep the Fed on a rate-hiking track next month. According to data released by the Bureau of Labor Statistics on Tuesday, the Consumer Price Index excluding food and energy rose 0.3% month over month. Overall prices rose 0.4%. Because data collection was disrupted during the government shutdown last October, the BLS did not release a year-over-year change.

The report showed that price pressures continued to build ahead of this month's midterm elections, as Democrats, focusing mainly on the cost of living in their campaign, reclaimed 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 the Fed to raise rates at this meeting to combat inflation. Before 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. (金十)

Source: 深潮 TechFlow