Higher October inflation raises odds of more Fed rate hikes

Tuesday morning brought higher-than-expected October consumer inflation data, signaling tougher economic conditions, according to reports from bakersfieldnow.com and mynews4.com.

The Consumer Price Index released by the Department of Labor showed a 0.4% monthly increase in consumer prices, which was above expectations but less than September's 0.6% rise.

Housing costs contributed to 30% of the overall increase in October, while food prices also rose by 0.5%. The Department of Labor could not provide 12-month inflation figures due to a prior federal government shutdown.

Federal Reserve Governor Christopher Waller indicated before the CPI release that a monthly inflation reading of 0.3% or higher would prompt consideration of more aggressive monetary tightening by the Fed.

As a result, the likelihood of a quarter-point interest rate hike at the Federal Reserve's December meeting has increased, reflecting concerns over sustained inflation pressures.