Rate Hike?

US inflation remained elevated in October, adding pressure on the Federal Reserve to consider raising interest rates. The figures suggest price pressures are persisting beyond one-off shocks, and the Fed’s December meeting will indicate whether it plans to act more quickly.

Consumer prices rose 0.4 per cent in October, after a 0.6 per cent increase in September, and were about 4 per cent higher than a year earlier; core prices rose around 2.8 per cent. Food contributed substantially to the latest rise, while energy prices increased 0.7 per cent after a 5.2 per cent jump in September. The article also notes that most of the year’s Fed rate increases have been gradual since Kevin Warsh replaced Jerome Powell as chair in May.