U.S. consumer prices rose 0.4% in October, beating forecasts, while FXStreet reported the euro below $1.12 as the data drew attention to the Federal Reserve’s December rate decision.
In a report published at 9:05 a.m. ET (14:05 UTC), FXStreet put the euro near $1.1190, down 0.28% on the day. The report appeared about 35 minutes after the inflation release; its price was a reported level, not a confirmed quote from an exact market tick.
The U.S. Bureau of Labor Statistics (BLS) said its consumer price index rose 0.4% from September on a seasonally adjusted basis. That exceeded the 0.3% forecast cited by Sucden Financial. September’s monthly increase was 0.6%.
Core inflation, which excludes food and energy, rose 0.3% from September, matching the previous month’s increase. The reading was above the 0.2% consensus forecast cited by MUFG Research.
Shelter prices increased 0.3%, food prices rose 0.5% and energy prices climbed 0.7%. Shelter contributed more than 30% of October’s rise in the overall index, the BLS said.
The agency did not publish most annual inflation rates for October. A lapse in appropriations in 2025 prevented it from collecting the corresponding October 2025 survey data needed for those comparisons.
Federal Reserve Governor Christopher J. Waller said in remarks prepared before the CPI release that he leaned toward a 25-basis-point rate increase in December even if inflation improved. He said a core monthly reading of about 0.3% or higher warranted considering a 50-basis-point increase. October’s reading met that threshold, but Waller’s view does not determine the committee’s decision.
The Federal Open Market Committee held its target rate at 3.75% to 4.00% on Oct. 28. Two members favored a 25-basis-point increase at that meeting.
Across the Atlantic, Eurostat estimated annual euro area inflation at 4.0% in October, up from 3.8% in September. The ECB held its deposit rate at 2.50% on Oct. 29 and declined to commit to a rate path, as EconoTimes reported in its coverage of the rate decision.
Eurostat is scheduled to publish full October inflation data on Nov. 18. The Fed’s next rate decision is scheduled for Dec. 9.
