Inflation seals the deal on another jumbo Fed hike

Another inflation surprise, with US CPI rising 0.4% in September, cements the prospect of further aggressive rate rises from the Federal Reserve.

Markets have moved to price in more rate hikes from the Federal Reserve (Fed) after US inflation surprised yet-again to the upside. Headline CPI advanced 0.4% over the month of September, surpassing expectations for another 0.2% increase. And the core measure, which excludes food and energy prices, saw a repeat rise of 0.6%. Economists had expected it to increase by 0.5%.