US inflation erases October wage gains
TLT•TLT•TLT•TLT•October consumer prices rose 0.4%, matching nominal hourly wage gains and leaving real hourly earnings unchanged. The brief also cites 165,000 jobs added, a 4.1% unemployment rate and a rise in December rate-hike odds above 90%.
October consumer prices rose 0.4%, matching nominal hourly wage gains and leaving workers’ real hourly earnings unchanged. Hotter-than-expected inflation pushed the odds of a December Federal Reserve rate hike above 90%, signaling continued pressure on borrowing costs.
Employers added 165,000 jobs in October, nearly triple expectations, while unemployment fell to 4.1% from 4.2%. Third-quarter nonfarm productivity rose 3.6% at an annualized rate, but workers’ share of output fell to 53%, its lowest level since records began in 1947.
The next CPI report is scheduled for December 10, one day after the Federal Reserve’s December 8-9 meeting, giving October inflation unusual policy significance.
