October CPI Runs Hot: Core Holds at +0.3% and the December Path Stays Priced In

October CPI ran hot on both of its printed dimensions Tuesday morning. The Bureau of Labor Statistics reported headline prices up 0.4 percent month over month and core inflation up 0.3 percent, each a tenth above the 0.3 percent and 0.2 percent consensus and comfortably above the Cleveland Fed's November 9 nowcast of plus 0.24 percent and plus 0.21 percent. The two figures land on a market that was already pricing a December hike near 80 percent.

Key Takeaways October headline CPI rose 0.4 percent month over month and core rose 0.3 percent, both above the 0.3 percent / 0.2 percent consensus and the Cleveland Fed nowcast (plus 0.24% / plus 0.21%). No October year-over-year figure exists: last…