October CPI Up 0.2%, Annual Rate at 2.6% and in Line with Wall Street Estimates. Here's How It Could Impact The Fed's Rate Cut Policy.

The Consumer Price Index rose 0.2% in October, bringing the annual rate to 2.6%. The data is in line with Wall Street expectations, according to the Bureau of Labor Statistics. Core CPI, excluding food and energy, increased 0.3% monthly and 3.3% year-over-year, aligning with forecasts. Stock futures gained, while Treasury yields declined post-report. The October inflation readings may challenge the Federal Reserve’s goal of 2% and complicate future policy, especially with a new administration soon taking office. Although a December rate cut seems likely, market speculation suggests the Fed may reduce the frequency of cuts in 2025.