The Consumer Price Index (CPI), a broad-based measure of goods and services costs, rose just 0.4% in October and 7.7% as compared to last year. Economists had expected a 0.5% month-over-month and 7.9% annual increase, per Bloomberg consensus estimates.
Excluding volatile food and energy costs, core CPI increased 0.3% for the month and 6.3% on an annual basis, which was also less than expected.
The data, released by the Bureau of Labor Statistics, reflected the lowest annual increase in CPI since January.
The release of these numbers propelled U.S. stocks forward this morning, and sent Treasury yields tumbling as Wall Street weighed the implication of softer prints on Federal Reserve policy.
The economic data has prompted hopes that the U.S. central bank will scale back on its aggressive policy stance, but Fed Chair Jerome Powell stressed earlier this month that no plans for a pause were underway.
Related: When Will We Hit Peak Inflation?
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