Markets begin pricing summer rate cuts as US inflation eases to 3.2% in October

Prices unchanged throughout the month

US inflation fell to an annualised rate of 3.2% in October, below expectations of 3.3%, the Bureau of Labor Statistics said today (14 November).

Prices did not change throughout the month, representing only the second month since May 2020 where month-on-month inflation did not rise. Lindsay James, investment strategist at Quilter Investors, said the data "offered a further signal that the Federal Reserve's work on interest rates is probably done". Moody's downgrades US government debt outlook to negative Following the release of the inflation figures, markets solidified their belief that the Fed had finished its hiking cycle. Odds for the Fed's 13 December meeting to keep rates steady increased to 99.7%, up from 85.5% a ...