China's factory inflation reached 5.7% in October, exceeding the 5.3% forecast and marking the highest level since June 2022. According to the National Bureau of Statistics, this increase was largely driven by a 27.9% rise in extractive industries, such as mining and oil and gas. In contrast, processing industries grew by 3.5%, while consumer goods prices declined by 0.1%.
This data precedes the release of US inflation figures, which are expected to influence the Federal Reserve's decision in December. Traders currently estimate a 78% probability of a rate hike. The Fed previously maintained rates between 3.75% and 4.00% on October 28, despite two policymakers favoring an increase.
US consumer prices rose 3.7% in the year through September, with energy costs increasing by 20.4%. Market analysts anticipate a 0.3% monthly rise in the US Consumer Price Index for October, or 0.2% excluding food and energy. Meanwhile, the Nasdaq-100 index remained 14.7% below its October 6 peak as of last Thursday.
