US core inflation runs hotter than forecast, keeping a Fed rate hike in play

US core inflation came in hotter than forecast for October, Bloomberg Economics says, a result that keeps a Federal Reserve rate hike on the table for the coming month. The core index strips out food and energy, the two categories most prone to sharp swings. What's left is a stickier read on price pressure, and it moved up more than anticipated.

The hotter print fits the expectations traders have been pricing for a higher policy-rate path — the Fed still working to wrestle inflation down. The Bureau of Labor Statistics has yet to publish the official October year-over-year CPI rate, and that number could move market expectations and Fed policy thinking again.

Next up, watch the Fed. Any commentary from central bank officials on how the inflation data shapes rate adjustments will get picked apart, along with treasury yields and inflation breakevens, as the market hunts for signals on where prices are heading.