Slower US inflation leaves Waller’s half-point December hike in play
Summary
US consumer prices rose 0.4% in October, slowing from September’s 0.6% increase, while core CPI increased 0.3% for the third straight month. The persistent core reading matches a level Fed Governor Christopher Waller had said could justify considering a 50-basis-point rate hike in December, though his remarks preceded the report and do not indicate the Fed’s decision. Energy rose 0.7%, food 0.5% and shelter 0.3%; used-car prices declined 1.2%. The BLS did not publish October year-over-year inflation rates because it lacked survey data from the prior year. Policymakers’ response and further inflation data will shape expectations for December.
