U.S. October CPI Beats Forecasts, Hits Waller Rate-Hike Threshold

BlockBeats News, Nov. 10 — U.S. October headline and core inflation both beat expectations, a reading that could keep the Federal Reserve on track to hold rates steady next month. The Bureau of Labor Statistics said Tuesday that the consumer price index excluding food and energy rose 0.3% month over month. Headline prices rose 0.4%. The BLS did not release year-over-year changes after data collection was disrupted by the government shutdown last October. Price pressures were still building ahead of the midterm elections this month, with Democrats focusing on the cost of living and trying to regain control of both chambers of Congress. The Iran war, tariffs, and a data-center boom have all fed inflation this year. This is the last CPI report Fed officials will see before their Dec. 8-9 policy meeting. Investors expect a rate increase at that meeting to combat inflation. Before the release, Fed Governor Waller said core CPI growth of 0.3% or more could warrant a 50-basis-point rate hike.