US October inflation rises more than expected
In short
US inflation rose more than expected in October. Consumer prices went up 0.4% from the previous month, and core CPI rose 0.3%, both 0.1 point above forecasts.
What the reporting says
US consumer inflation rose 0.4% month on month in October and core CPI increased 0.3%, both 0.1 percentage point above forecasts. Higher costs for groceries, housing, electricity and motor vehicle insurance added to price pressures. The data strengthened expectations that the Federal Reserve could raise rates at its December 8-9 meeting.
Why it matters
US inflation came in hotter than expected in October, with consumer prices up 0.4% month on month and core CPI up 0.3%, both above forecasts by 0.1 percentage point. The gains were tied to groceries, housing, electricity and motor vehicle insurance. The data increased expectations that the Federal Reserve may raise rates at its December 8-9 meeting, which would matter for borrowing costs and markets.