US inflation up 0.4% in October, Fed on track for December hike

US inflation rose 0.4% in October, with core prices up 0.3%, keeping the Federal Reserve on track to raise interest rates in December. The report is the last CPI data before the Fed's December 8-9 policy meeting. Core inflation beat estimates for a third straight month, driven by broad increases in groceries, housing, electricity, and motor vehicle insurance. Fed Governor Christopher Waller said a 0.3% core rise may warrant a larger half-point rate hike, and investors increased bets on such a move. The BLS did not publish year-over-year changes due to data collection interruptions from last October's government shutdown. Core prices rose 3.7% on a three-month annualized basis, the most in over two years, while real average hourly earnings were little changed, fueling cost-of-living concerns that shaped the midterm elections.