Inflation recorded a shocking reading in the market with consumer prices soaring more than expected in October by hitting the highest level in more than 30 years based on a report released by the Department of Labor on Wednesday.
The Consumer Price Index (CPI) or CPI, which measures the prices of a number of products ranging from petrol to retail goods, was reported to have increased by 6.2% from a year ago. This figure far exceeds the estimated reading released by the Dow Jones of 5.9%.
On a monthly basis, the CPI reading rose 0.9% from an estimate of 0.6%. Core CPI rose 0.6% from an estimate of 0.4%. Annual core inflation expanded at 6.2%, compared to expectations of 4% and the highest since November 1990.
Fuel prices jumped 12.3% for October, part of a 59.1% increase over the past year. Overall energy prices rose 4.8% in October and were up 30% for the 12 -month period.
The data was released after policymakers such as Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen maintained their view that current price pressures were temporary and related to the spread of the pandemic. back to normal next year.
The futures stock market fell following the report and bond yields rose. The US dollar index strengthened 0.30% to a trading level of 94.23.
Rising inflation could cause the Fed to tighten policy faster than indicated, the Central Bank is also committed in the next few weeks to start reducing the amount of bonds it buys each month.
