US October CPI exceeded expectations: headline CPI +0.4% MoM and core CPI (ex
food and energy) +0.3% MoM, the Bureau of Labor Statistics said Tuesday. BLS did
not publish YoY figures because data collection was interrupted during last
October’s government shutdown. This is the final CPI ahead of the Fed’s Dec. 8-9
meeting and should keep pressure on policy; investors price a rate increase at
that meeting. Before the release, Fed Governor Waller said a core CPI print of
+0.3% or higher could justify a 50bp hike. The report cites the Iran war,
tariffs and a data-center boom among this year’s inflation drivers and shows
rising price pressures ahead of midterm elections, where Democrats emphasized
cost-of-living and regained control of both congressional chambers.
