The Consumer Price Index in US rose just 0.4 percent in October on a seasonally adjusted basis, the same increase as in September, fuelling hopes that the peak has passed and the Fed can slow the pace of rate hikes and perhaps bring them to an earlier conclusion.

However, the jobs market remains tight and month-on-month readings are still tracking far higher than required to get inflation back to 2%.

Over the last 12 months, the inflation increased 7.7 percent before seasonal adjustment, the smallest 12-month increase since the period ending January 2022.

Cost of shelter contributed over half of the monthly all items increase, with gasoline and food also increasing. The energy prices increased 1.8 percent over the month as the gasoline and the electricity rose, but the natural gas decreased.

The food increased 0.6 percent over the month with the food at home rising 0.4 percent.

Meanwhile, core inflation (less food and energy) rose 0.3 percent in October, after rising 0.6 percent in September. The indexes for shelter, motor vehicle insurance, recreation, new vehicles, and personal care were among those that increased over the month. Declines in October included the used cars and trucks, medical care, apparel, and airline fares indexes.

Overall, inflation increased 7.7 percent for the 12 months ending October and less food and energy index rose 6.3 percent.

The energy increased 17.6 percent for the 12 months ending October, and the food increased 10.9 percent over the last year. All of these increases were smaller than for the period ending September.

Accordin to Tradingeconomics, new claims for unemployment benefits in US rose by 7,000 to 225,000 on the week ending November 5th, the highest increase in four weeks and surpassing expectations of 220,000.

The result eased perceptions of a tighter labor market, clashing with the hawkish policy signaled by the Federal Reserve in its November meeting.