In October, the U.S. Consumer Price Index (CPI) rose 3.2% year-on-year.
According to the U.S. Department of Labor on the 14th (local time), the consumer price index, an indicator of inflation, rose 3.2% year-on-year as of October. This figure is slightly below the market expectation (3.3%).
Compared to the consumer price growth rate (3.7% in September), the growth rate slowed significantly. Compared to the previous month, it rose 0.4%, the same as the September increase. The figure was higher than the expert estimate (0.1%).
Core CPI, excluding highly volatile energy and food, rose 4.0% year-on-year, slightly below the market forecast (4.1%). Compared to the previous year, it was up 0.2%.
The slowdown in CPI growth in October is attributed to falling prices such as gasoline and used cars.
The CPI growth rate fell to 3% in June after peaking at 9.1% year-on-year in June last year. Since then, it has recorded 3.2% in July, 3.7% in August, and 3.7% in September.
Market expectations for the end of the U.S. Federal Reserve’s interest rate hike are expected to grow as the CPI growth rate in October fell short of market expectations.
On the 1st, the Fed froze its key interest rate but left open the possibility of further hikes, but market participants believe that the Fed’s rate hike has virtually ended.
Earlier in the day, the yield on U.S. government bonds plunged. According to the electronic trading platform TradeWeb, the 10-year U.S. Treasury bond rate was 4.49% at around 8:40 a.m., plunging about 12bp (1bp=0.01%) from just before the October CPI announcement.
