Core US inflation slows, reinforcing “peak rates” view
Underlying US consumer inflation softened more than expected last month, essentially eliminating market-implied odds on one more move in the Federal Reserve’s tightening cycle, and sending global yields lower. According to data published by the Bureau of Labor Statistics this morning, the core consumer price index – with highly-volatile food and energy prices excluded – rose 4.0 percent in October from the same period last year, up 0.2 percent on a month-over-month basis. This was weaker than consensus estimates among economists polled by the major data providers ahead of the release – which were set at 4.1 and 0.3 percent,...