U.S. CPI was released earlier today as the headline number MoM for October came in stronger than expected at 0.4% vs 0.3% expected and 0.0 in September. However, the more important component of the data was the release of U.S. Core CPI YoY. This is one of the major data points that the Fed watches to get a better gauge of true inflation as it excludes food and energy prices. The U.S. Core CPI YoY for October was slightly weaker at 2.3% vs. 2.4% expected and 2.4% last. Note that this figure is still above the Fed’s target rate for inflation of 2.0%.
