US Inflation Falls Below Expectation at 7.7%

The latest US CPI report shows that inflation reached 7.7% in October, representing the softest inflation print since the beginning of the year. Core inflation, which excludes food and energy prices also cooled retracting from their 40-year high seen in September, advancing 6.3%. The biggest decline in price gauges that helped drive the lowest inflation print this year was medical care services and used vehicles, whilst shelter costs failed to restrain core inflation increasing 0.8% last month. The overall moderation in inflation now points toward a potential peak in consumer-price growth, with many investors hoping that this is a sign for the Federal Reserve to begin ebbing away from their aggressive interest-rate hikes. Inflation still remains elevated at levels above comfort for the Fed, but a 0.5% rate hike versus 0.75% in December looks more plausible. Following the news, the S&P 500 and Nasdaq rose 3.6% and 5.2% respectively, whilst US Treasury yields and the dollar both slid