A rise in prices could make the Federal Reserve less likely to cut its key interest rate in the coming months. But most economists believe inflation will continue its slowdown.

U.S. consumer prices increased as expected in October, and progress toward bringing inflation down has slowed since mid-year, which could result in fewer interest rate cuts from the Federal Reserve next year.

As expected by economic forecasters, inflation heated up in October. The consumer price index sped up as expected to a 2.6% year-over-year growth rate in October from September's rate of 2.4%. Inflation had been cooling down for most of 2024.

A gauge of global stocks fell for a second straight session on Wednesday and longer-dated U.S. Treasury yields rose in choppy trading as investors assessed the latest U.S. inflation data and the path of interest rates from the Federal Reserve.

LONDON/TOKYO (Reuters) -World stocks dropped for a second successive day on Wednesday, jolted by another push higher in U.S. Treasury yields ahead of inflation data that could inform the pace of Federal Reserve policy easing.

Asian stocks slumped on Wednesday as a sharp rise in U.S. bond yields unnerved investors ahead of key inflation data that could inform the pace of Federal Reserve policy easing. Bond yields have soared since Donald Trump was elected back to the White House last week on expectations lower taxes and higher tariffs will push up the fiscal deficit and increase government borrowing.