The US consumer price index was flat in October from the previous month amid lower gasoline prices, indicating signs of slowing inflation and possibility of the Federal Reserve being done with interest rate hikes.
Despite flat quarterly growth for inflation, data showed that prices increased 3.2% from a year ago. Still, both figures were below Wall Street estimates.
Meanwhile, Core CPI, which excludes volatile energy and food prices, rose 0.2% QoQ and 4% YoY versus the forecast of 0.3% and 4.1%. Energy prices recorded a 2.5% decline for the month, which offset a 0.3% increase in food prices.
According to CME FedWatch Tool, the market gave 94.8% probability that the Fed will not raise interest rates in December and throughout early 2024. The first rate cut could be as soon as May next year, which topped the 50% odds for the Fed to maintain rates a day ago.
