Data released on November 10 showed that U.S. consumer prices rose 0.4% month over month in October, seasonally adjusted, exceeding economists’ expectations of 0.3%. This marked a slowdown from September’s 0.6% increase. Year-over-year figures are unavailable for this month because of a data gap caused by the 2025 government shutdown.
The higher-than-expected reading came as markets were fully pricing in a Federal Reserve interest rate hike in December. CME Group’s FedWatch tool showed a 98.9% probability of a 25-basis-point rate hike before the data was released.
The higher-than-expected reading came as markets were fully pricing in a Federal Reserve interest rate hike in December. CME Group’s FedWatch tool showed a 98.9% probability of a 25-basis-point rate hike before the data was released.