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Fed: No further hikes – Commerzbank

US consumer prices in October were unchanged from the previous month. In the view of economists at Commerzbank, a further interest rate hike is becoming increasingly unlikely.

US inflation surprisingly weak

US consumer prices surprisingly remained unchanged in October compared to the previous month. The year-on-year rate fell from 3.7% to 3.2%. The more important core rate, which excludes energy and food, amounted to 0.2% in month-on-month terms. In a year-on-year comparison, it fell from 4.1% to 4.0%.

Today's data should reinforce the market's view that the Fed will not raise its key interest rates any further (this has also been our forecast for some time).

 

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