U.S. CPI Rises 0.4% in October, Keeping Half-Point Fed Hike in Play
Updated
Updated · The New York Times · Nov 10
U.S. CPI Rises 0.4% in October, Keeping Half-Point Fed Hike in Play
3 articles · Updated · The New York Times · Nov 10
Summary
October consumer prices rose 0.4% after a 0.6% gain in September, while core CPI increased 0.3% — matching the threshold Fed Governor Christopher Waller said could justify a larger December move.
The report offered little relief beneath the headline: supercore services rose 0.4%, food climbed 0.5%, and energy stayed firm even as used car prices fell 1.2%.
BLS did not publish official year-over-year figures because of missing data from last year's shutdown, but New York Times estimates put headline inflation near 4% and core inflation around 2.8%.
Markets quickly adjusted to a higher-rate outlook, pushing the 2-year Treasury yield up more than 0.1 point to 4.69%, while stocks initially dipped.
With the Fed meeting on Dec. 8-9 and inflation still outpacing 3.1% wage growth, the data strengthens expectations of another rate increase and keeps mortgage and holiday travel costs under pressure.