Bank of England deputy governor Lombardelli said it may be necessary to raise interest rates further in the near term.

Analyst Ira Jersey said today's CPI print was broadly above expectations, reviving the possibility of a 50bp Fed hike in December flagged by Fed Governor Waller and prompting a rapid bear‑flattening move. Jersey expects the yield curve to continue flattening until the Fed stops hiking. If the Fed does raise 50bp in December, he sees a high probability of another hike in March next year.

US equity futures were mixed after the best session since April as markets await a key inflation report that could pave the way for a Fed rate hike next month. S&P 500 futures were up just under 0.1%; Nasdaq-100 futures fell about 0.4%. WTI crude slid roughly 2% to around $85/bl, its weakest since late August. Sevens Report founder Tom Essaye said recent Fed comments offset oil’s continued decline ahead of today’s CPI release.