US inflation gains momentum in October, fueling December rate hike expectations

Monthly inflation in the United States accelerated to 0.4 percent in October, according to data from the Bureau of Labor Statistics, bolstering the case for the Federal Reserve to raise borrowing costs at its December meeting.

The monthly gain in the consumer price index reflects persistent inflationary pressures across the economy despite efforts by the central bank to cool demand through a series of rate increases that began last year. The data is likely to feature prominently in Fed policymakers' deliberations as they assess whether further tightening is warranted.

Year-over-year inflation figures were unavailable for October due to a gap in data collection during the previous year's government shutdown, limiting the full picture of annual price trends. However, analysts and market participants are interpreting the monthly reading as a signal that price growth remains sticky.

The October inflation report comes amid broader economic data showing resilience in the US labour market and consumer spending, factors that have kept the Fed's attention focused on controlling price pressures. Financial markets have increasingly priced in a rate decision at the central bank's December meeting based on recent economic indicators.

The Fed has maintained that decisions on future rate moves will be data-dependent, with officials closely monitoring inflation trends, employment figures and broader economic growth metrics in the months ahead.