Both overall and core US CPI for October exceed expectations, potentially prompting a Fed rate hike in December

Both the overall and core inflation rates in the US for October exceeded expectations, which may keep the Federal Reserve on track to raise interest rates next month. According to data released by the Bureau of Labor Statistics on Tuesday, the consumer price index excluding food and energy rose by 0.3% from the previous month. Overall prices increased by 0.4%. Due to data collection disruptions during the government shutdown last October, the Bureau of Labor Statistics did not publish a year-on-year change. The report indicates that, ahead of this month's midterm elections, price pressures continue to mount, with the Democratic Party mainly focusing on the cost of living in their campaign as they regained control of both chambers of Congress. This year, the Iran war, tariffs, and the boom in data centers have all contributed to inflation. This is the last CPI report Federal Reserve officials will see before the December 8-9 policy meeting. Investors expect them to raise interest rates at this meeting to address inflation. Before the release, Federal Reserve Governor Waller indicated that if core CPI rose by 0.3% or more, the Federal Reserve might need to raise rates by 50 basis points.