US consumer prices rose 0.4% in October, higher than expected, likely to raise interest rates in December

[Washington Current Affairs] The US Department of Labor announced on the 10th that the consumer price index (CPI) for October rose 0.4% from the previous month on a seasonally adjusted basis. Growth slowed from the previous month (0.6% increase) as energy prices due to the US-Iran conflict came to a halt. However, it exceeded market expectations (0.3% rise). In a sign that inflationary pressures are persistent, the Federal Reserve is likely to raise interest rates for the first time in two meetings at its December monetary policy meeting.

The core index, which excludes highly volatile energy and food items, rose 0.3%, the same level as last month. In a speech prior to the release of the CPI, Fed Director Waller argued that if the growth rate of the core index were around or above 0.3%, ``we should consider raising interest rates by 0.5% at the December meeting'' in order to achieve price stability.