October inflation beats forecasts, Fed rate hike near certain

October inflation rose 0.4% from September, double Wall Street's 0.2% forecast, making a Federal Reserve rate hike next month nearly certain. Core prices, excluding food and energy, climbed 0.3%, the largest jump since February. Energy rose 0.7%, while transportation and recreation services increased 0.8% and 0.9%, respectively. Economists estimate the annual rate near 4%, with no official October figure due to last year's government shutdown. Forecasters see a 9-in-10 chance of a quarter-point hike and 1-in-10 for half-point. Locally, the ABC15 Affordability Index improved on cheaper gas, and the grocery basket fell over a dollar as beef and chicken prices dropped.