CPI inflation rose to 2.6% in October, higher than the 2.4% in September, though in line with projections. There is an indication that the probability of a pause in rate cuts has risen.

Core CPI, which omits food & energy, increases 0.3% in October. matches forecast Ahead of the CPI data, a rate cut in December remains the "solid base case but not a lock," said Krishna Guha, vice chairman of Evercore ISI.

U.S. inflation ticked higher in October, but stable core price pressures and tame month-on-month gains prompted a sigh of relief on Wall Street and likely supported bets for an end-of-year interest rate cut from the Federal Reserve.