US inflation hotter than expected in October, rate rise likely in December
The US consumer price index rose 0.4% in October, more than the 0.3% expected, keeping inflation above the Fed's 2% target.
US inflation dropped from September's 0.6% rise to 0.4% in October but still beat what economists expected. Housing and food prices went up, with shelter making up over 30% of the rise.
Core inflation, which leaves out food and energy, stayed at 0.3% for a third month. Mark Zandi, chief economist at Moody's, said this makes another Fed rate rise more likely in December.
- 0.4%
- October CPI monthly rise
- 0.3%
- Expected monthly rise
- More than 5
- Years above Fed target
- Over 30%
- Housing's share of rise
Why it mattersHigher-than-forecast inflation could lead the US central bank to keep raising interest rates, affecting global markets and economic growth.
AustraliaUS inflation and Federal Reserve decisions influence Australian interest rates, the Australian dollar's value, and investment returns for Australians holding US assets.
