Washington:US inflation showed a slight deceleration in October compared to the previous month, yet it exceeded analyst forecasts, as indicated by government data released on Tuesday.
According to Bangladesh Sangbad Sangstha, the consumer price index (CPI) for October increased by 0.4 percent from September, a reduction from the 0.6 percent rise observed in the preceding month, based on figures from the Labor Department.
This increase surpassed the 0.3 percent anticipated by analysts, raising the likelihood that the US Federal Reserve may opt to increase interest rates in December. Following the release of this data, equity market futures experienced a decline.
The report highlighted that energy price hikes slowed significantly compared to earlier reports, with the gasoline index growing by merely one percent, a stark contrast to the 9.1 percent surge recorded from August to September. However, the US Bureau of Labor Statistics identified several categories that experienced price increases, including recreation, medical care, household furnishings, and education.
The food index saw a rise of 0.5 percent in October after remaining unchanged in September. Earlier on Tuesday, Federal Reserve Governor Christopher Waller expressed support for a potential rate hike in December, citing persistently high inflation levels.
Despite the CPI report indicating movement in an unfavorable direction, Art Hogan of B. Riley Wealth Management noted that markets are mindful of significant improvements in the energy sector observed in November thus far.