The US Bureau of Labor Statistics released October CPI data, a crucial economic indicator for global investors. The October Consumer Price Index will be released on Wednesday, followed by the Producer Price Index and weekly jobless claims on Thursday and retail sales data on Friday.

The all-items index rose 2.6 percent for the 12 months to October, after rising 2.4 percent in the previous 12 months to September. The index for all items less food and energy rose by 3.3% over the past 12 months.

The annual rate of core US consumer price inflation, which excludes items such as food and energy, was at a three-month high of 3.3% in October 2024, unchanged from September and in line with market estimates.

The consumer price index for all urban consumers (CPI-U) rose 0.2 percent on a seasonally adjusted basis in October, the same increase as in each of the past 3 months. Over the past 12 months, the all-items index rose 2.6 percent before seasonal adjustment.

The index for all items less food and energy rose 0.3 percent in October, the same as in August and September.

Effective with the October CPI data, the CPI program used secondary sources of medical claims data for the private insurance portion of the medical services and outpatient hospital services indices.

The annual US inflation rate accelerated to 2.6% in October 2024, up from 2.4% in September, which was the lowest rate since February 2021 and in line with market expectations.

It marks the first rise in inflation in seven months. On a monthly basis, the CPI rose 0.2%, in line with the previous three months, also matching forecasts. The shelter index rose 0.4%, accounting for more than half of the monthly increase in all items.

Meanwhile, core inflation was steady at 3.3% as expected, with monthly core inflation also holding at 0.3%, the same as in September.

The Fed has started an interest rate cut campaign as inflation is falling. The Fed cut interest rates by 75 basis points. First in September, the Fed cut interest rates by 50 bps and then by 25 bps at the November FOMC meeting. The next FOMC meeting is on December 17-18.

US Fed Chairman Powell and members of the FOMC may face a tough time trump cardhis fee discounts and tariffs can lead to inflation, potentially impacting the rate cut campaign.

Meanwhile, the S&P 500 and Nasdaq 100 are up 30% and the Dow 30 is up 26% over the past 12 months. How the 2024 Santa rally plays out remains to be seen before Trump takes office as the 47th president of the United States of America on January 20, 2025.