US inflation, jobs data bolster Fed December rate-hike chances
Fed chief says a rate rise would be appropriate if economic data kept pointing to improving labour market and rising inflation
Washington
US CONSUMER prices recorded their biggest increase in six months in October on rising gasoline costs and rents, suggesting a pick-up in inflation that potentially clears the way for the Federal Reserve to raise interest rates in December.
Prospects for a rate hike next month also got a boost from other data on Thursday showing first-time applications for unemployment benefits tumbling to a 43-year low last week and housing starts surging to a nine-year high in October.
The reports painted an upbeat picture of the economy early in the fourth quarter and came as Fed chair Janet Yellen said the US central bank could raise borrowing costs "relatively soon".
The Labor Department said its Consumer Price Index (CPI) increased 0.4 per cent last month after rising 0.3 per cent in September. In the 12 months through October, the CPI advanced 1.6 per cent, the biggest year-on-year increase since October 2014. The CPI increased 1.5 per…
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