US CPI was up 2.6% YoY in October, meeting consensus estimates and up from 2.4% in September, the Bureau of Labor Statistics, or BLS, reported. Less food and energy volatility, core CPI came in the same at 3.3% YoY, reflecting sustained underlying inflation pressures.
This means that on a month-over-month basis, headline and core CPI rose 0.2% and 0.3%, respectively, reflecting firmer changes in prices. According to analysts, these may further challenge the gradual easing stance of the Federal Reserve, especially since inflation remains above the long-term targets of the central bank.
For now, markets will continue to closely monitor the shift in the Fed's policy outlook for December at slightly lower levels for the probabilities of a rate cut after the report.
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