U.S. inflation exceeds expectations

The Consumer Price Index (CPI) increased by 0.4% month over month, exceeding the forecast of 0.3%. Monthly inflation had stood at 0.6% in the previous period. Although headline inflation slowed compared to the previous month, it remained higher than expected.

Core CPI, which excludes food and energy prices, rose by 0.3% month over month. Markets had expected a 0.2% increase, while the previous period also recorded a 0.3% rise. Both inflation measures exceeding forecasts are significant for market expectations surrounding the Federal Reserve's (Fed) December interest rate decision. The data indicated that price pressures in the United States continue to persist.