US consumer prices rose 0.4% in October, above forecasts

In depth

US consumer prices rose 0.4% in October, against a forecast of 0.3%. The figure, above forecasts, also carries weight in the market, with interest rate futures showing a 98% probability of a rate hike in another month.

The core index, which excludes food and energy, rose 0.3% last month, against a forecast of 0.2%. It is the third consecutive month in which the core index has risen at the same rate.

The increase is especially surprising, following a fall in fuel prices. Fed governor Christopher Waller warned that a sharper increase of 0.5% may be required. Mizrahi Tefahot estimates that the American move will make it harder for the Bank of Israel governor to cut interest rates in Israel, while inflation in Israel stands at 1.6%.