10 November 2026
If you are covering the latest US inflation data, please see the following comment from Kit Rees, investment strategist at Quilter:
“US inflation came in hotter than expected in October with CPI rising by 0.4%, while core inflation increased by 0.3%. The headline figure is down from September’s 0.6% rise, but it still makes for uncomfortable reading for the Federal Reserve and is an unwelcome development for President Donald Trump after voters sent a clear message of discontent in the midterm elections.
“Energy has been the major inflationary headache this year, but the Fed will be more concerned that price pressures are continuing to feed into the wider economy. Shelter costs rose by 0.3%, accounting for more than 30% of the overall monthly increase, while food prices climbed by 0.5%.
“Markets are already responding. Treasury yields had been moving higher following hawkish comments from Federal Reserve Governor Christopher Waller, and this print has added further pressure. Investors have had to adjust to the prospect of rates remaining higher for longer, and another hot inflation reading will only reinforce that message.
“Crucially, the Fed does not have a deteriorating jobs market forcing its hand. October’s strong employment figures showed the US economy continues to hold up well, giving policymakers greater licence to keep monetary policy tight. Today’s inflation print only strengthens the case for another interest rate rise in December and it would take a significant shift in the data to knock the Fed off that path.”
