❗️📊US CPI Lifts Fed Hawkish Pricing: Cable FX Macro

• The October 2026 Consumer Price Index report revealed a hotter-than-expected inflation picture, with headline prices rising 0.4 % month-over-month (exceeding the 0.3 % consensus) and core CPI advancing 0.3 % (above the 0.2 % estimate).

• While energy price growth moderated following September's sharp surge, persistent upward pressure in shelter and core services maintained a sticky 3-month annualized core inflation pace of 3. 4%. Coupled with declining real average hourly earnings, this third consecutive month of elevated core inflation intensifies pressure on the Federal Reserve, raising the likelihood that the FOMC will hold its benchmark target rate at 3.75 %–4. 00% for longer or reconsider rate hikes into 2027 to steer inflation back toward target.

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