U.S. October CPI Data Anticipated To Influence Federal Reserve Rate Outlook

According to Odaily, the U.S. Consumer Price Index (CPI) data for October is set to be released later today, potentially causing significant fluctuations in the U.S. dollar and impacting market pricing for the Federal Reserve's interest rate outlook in the coming months. Market expectations suggest that overall inflation in the U.S. for October will rise by 2.6% year-on-year, compared to the previous 2.4%. Meanwhile, core inflation is expected to remain steady at an annual rate of 3.3%. Additionally, the monthly rates for both overall and core CPI are projected to increase by 0.2% and 0.3%, respectively. Analysts from TD Securities have commented on the anticipated inflation report for October, noting that inflation data is likely to remain more robust in the short term than the Federal Reserve would prefer, reversing some recent improvements in price change trends. They predict that the overall CPI will rise by 0.29% month-on-month, while the core inflation rate is expected to increase by 0.32% month-on-month. This would result in a slight uptick in the annual growth rate of the overall CPI to 2.6%, with the core CPI annual growth rate stabilizing at 3.3%.