U.S. core consumer prices rose 0.3% in October, meeting a level Federal Reserve Governor Christopher J. Waller cited for considering a larger rate increase as sterling slipped below $1.34 Tuesday.
Reuters put the pound at $1.3395, down 0.3%, and reported that the inflation figures and Waller’s remarks supported the dollar. Sterling had gained nearly 0.7% Monday as demand for the dollar eased, the news agency reported.
Before the inflation release, FXStreet reported that the pound’s advance had stalled just above $1.3450. The outlet put sterling at $1.3424 at 7:58 a.m. ET (12:58 UTC).
The Bureau of Labor Statistics said its Consumer Price Index rose 0.4% in October from September, following a 0.6% monthly increase in September. Core CPI, which excludes food and energy, rose 0.3% for a third consecutive month.
The agency did not publish year-over-year changes for indexes lacking October 2025 data. It said a lapse in appropriations had prevented it from collecting survey data that month.
Waller spoke before the October figures were released. He said he favored a 25-basis-point increase in December even if inflation improved, while a 50-basis-point increase should be considered if monthly core inflation was around 0.3% or higher. Those were his views, not a Fed decision.
The Fed’s next policy meeting is scheduled for Dec. 8-9.
