The U.S. Consumer Price Index (CPI) for October surprised the market after an increase of 0.4% for the month and 7.7% from a year ago, which were lower than estimates. The consensus expected an increase of 0.6% for the month and 7.9% from last year.
Core inflation which excludes volatile food and energy costs rose 0.3% for the month and 6.3% on an annual basis. Both figures were also lower than the consensus for 0.5% and 6.5%.
In October, prices for medical care services, used vehicles and apparel declined, while shelter costs recorded the highest monthly gain since 1990.