US consumer prices rose 7.7% in the year ended in October, according to data released on Thursday (10).
The report was better than expected and surprised investors as markets rose on the news. But the Federal Reserve still has a long way to go in its battle to tame inflation.
The Consumer Price Index (CPI), which measures the change in prices of various consumer goods and services, increased by 8.2% in September.
In relation to the month of September, the CPI rose 0.4%.
Still, there appear to be some gains on a measure watched even more closely by the Fed: core inflation, which excludes the more volatile food and energy categories, was 6.3% in the year ended in October and below the increase in 6.6% from September.
In the monthly comparison, the core increased by 0.3%. It had recorded monthly increases of 0.6% in August and September.
“Today’s CPI report shows that inflation is moving in the right direction,” said Eric Merlis, managing director and co-head of global markets at Citizens. “The report provides ammunition for the Fed to start pricing in squeezes below 75 basis points. This will be a welcome development for the Fed.”
Separate data showed that initial US jobless claims rose by 7,000 to a seasonally adjusted 225,000 in the week ended Nov. Economists predicted 220,000 requests for the period.
In update
*With information from the Reuters agency
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
