The October US consumer price index (CPI) increased to an annual rate of 2.6 percent, aligning with estimates from a Dow Jones survey.
Core CPI, which excludes food and energy costs, rose by 3.3 percent last month, also matching forecasts.
Following the report, fed funds futures trading suggested a high likelihood of a rate cut by the central bank in December, based on CME FedWatch tool data.
“It’s time to stop worrying about the Fed and inflation,” said David Russell, global head of market strategy at TradeStation. “Stocks have been on autopilot since the election and today’s numbers do nothing to hurt the trend. December is still in play for a cut.”
The market had pulled back on Tuesday, as the Dow dropped about 382 points, or 0.9 percent, the S&P 500 fell 0.3 percent, and the Nasdaq Composite slipped 0.1 percent, all easing from the post-election rally.
