*SUMMARY OF US OCTOBER CPI REPORT:

1. U.S. CPI rose 0.0% on the month, below expectations for a 0.1% gain.

2. Headline CPI fell to 3.2% Y/Y, compared to forecasts for a faster increase of 3.3%.

3. The annual CPI rate is back at the lowest level since July.

4. U.S. core CPI rose 0.2% M/M, missing estimates of 0.3%.

5. Headline core CPI rose 4.0% Y/Y, slowing from 4.1% in September.

6. US Core CPI fell to the lowest level since September 2021.

*Instant Reaction:

-US stocks rally

-Dollar tumbles

-Yields sink

🔥Key Takeaway: While the rate of inflation is declining, it’s not yet clear whether it will drop to the Federal Reserve’s target of 2% anytime soon. Taking that into consideration, the Fed’s inflation battle is far from over as sticky core prices persist.