US CPI rose 0.4% in October, boosting bets on a Fed rate hike
What's new: Treasury yields jumped and traders began pricing in a 13.6% chance of a half-point move in December.
US consumer prices rose more than expected in October, adding pressure on the Federal Reserve ahead of its Dec. 8-9 meeting. The Bureau of Labor Statistics said the consumer price index increased 0.4% for the month, above the 0.3% gain economists surveyed by Dow Jones expected. Core CPI, which excludes food and energy, rose 0.3%, also above forecasts for 0.2%. Stocks futures edged lower after the release while Treasury yields moved higher. Traders fully priced in a quarter-point rate increase next month and assigned a 13.6% chance of a half-point move, according to CME Group's FedWatch tool. Shelter accounted for more than 30% of the monthly increase, while food rose 0.5% and energy climbed 0.7%.