Data from the U.S. Bureau of Labor Statistics shows that the U.S. CPI rose 0.4% month-over-month in October after seasonal adjustment, compared to an expected increase of 0.3% and a previous increase of 0.6%.
The core CPI rose 0.3% month-over-month in October, below the expected 0.2% and the previous month's 0.3%. Due to the US government shutdown in October last year, the Bureau of Labor Statistics was unable to compile a complete index and therefore did not release year-over-year data this time.
AI Interpretation: Core inflation data, exceeding market expectations, directly reveals the stubbornness of rising prices in the United States. This result shattered the illusion of a rapid decline in inflation, forcing the market to reassess the Federal Reserve's tightening policy path. High inflationary pressures will maintain the Fed's resolve to keep interest rates high, thus exerting sustained downward pressure on risk assets. Investors must accept the reality of interest rates remaining high for a longer period, and the market's aggressive bets on rate cuts will face a sharp correction.
