The fact that price pressure in the USA is stronger than expected could have further driven the general concerns about interest rate hikes in the USA.
Now, according to the CME Group’s “Fed Watch Tool,“ as many as 10.8 percent of market participants expect a 50 basis point interest rate hike at the December 9 meeting, and 89.2 percent expect an increase of 25 basis points.
US Dollar Index
US consumer prices in October: an increase of 0.4 percent compared to the previous month
Consumer prices in the USA rose by 0.4 percent in October compared to September, as the US Department of Labor announced on Tuesday. Economists had expected an increase of 0.3 percent in advance.
The value for the previous month is not available this time due to the shutdown last autumn. Various federal agencies, such as the Statistics Office, had suspended their work. The core inflation rate climbed by 0.3 percent, also higher than expected (0.2 percent). This rate excludes the drivers of energy and food prices.
Over the coming weeks, investors should keep a close eye on US producer prices on Friday (14:30), which are also likely to provide monetary policy signals. Economists expect a 0.4 percent increase compared to the previous month, after previously 1.3 percent.
