US October Inflation Moderates

Some better inflation news out of the USA overnight, with inflation figures for October coming in below expectation.

⭐️ Headline inflation moderated to 7.7% YoY
⭐️ Headline inflation was up only 0.4% MoM
⭐️ Core inflation is at 6.3% YoY
⭐️ Core inflation was up 0.3% MoM

While inflation is still way above where the Federal Reserve wants it to be, and we can't make judgements based on a single monthly print, it's encouraging to see the pace of inflation slowing.

In particular, core goods inflation continues to fall, while core services inflation has risen less than anticipated.

Off the back of this lower than expected print, the market is now anticipating a 50bp increase in interest rates by the Fed at their December meeting, which makes sense to me. With signs the tide may be starting to turn, slowing down a bit and waiting to see how things develop makes some sense.