The U.S. central bank is considering a 0.5-point interest rate hike

US October inflation came in higher than forecast, prompting the central bank to begin discussing a sharper interest rate hike.

In October, consumer prices rose 0.4% month-over-month. Core inflation, excluding energy and food, came in at 0.3%, while economists had expected a lower figure.

Several Federal Reserve officials are now considering a 0.5 percentage point rate hike in December. Previously, markets had mostly expected a 0.25-point increase.

The rate currently stands in the 3.75-4% range. Following the new inflation data, the likelihood of a larger increase has also grown.

Source: Reuters