The CPI, a key measure of the cost of goods and services, rose 0.2% for the month. That brought the annual inflation rate to 2.6%, up slightly from 2.4% in September.
Both figures were in line with Dow Jones predictions.
When excluding food and energy, inflation was slightly stronger. Core CPI rose 0.28% in October, moderating slightly from September and translating to an annualized rate of 3.3%, also in line with expectations.
In detail, core goods prices remained flat month-over-month, even as used car and truck prices rose substantially.
Core services, excluding rent and owner-equivalent rent (OER), slowed to a 0.3% monthly increase, largely due to a decline in airfares, which are calculated differently in the core Personal Consumption Expenditures (PCE) index.
Meanwhile, rents and OERs both increased, although they remained on a downward trend. OERs rose 0.4% for the month, while primary residential rents rose 0.3%.
"As in recent months, we expect the core PCE reading to be softer given the sub-component detail," commented Bernstein economists David Doyle and Chinara Azizova.
As for the annual core inflation rate of 3.3%, economists believe this figure “should moderate in the coming months, as base effects are favorable, especially in 1Q24.”
"The threatened tariffs present an upside risk to the outlook beyond this," they added.
Stock futures rose sharply after the report was released, while Treasury yields fell. The data prompted traders to significantly increase the odds that the Federal Reserve will cut its benchmark interest rate by an additional quarter-point in December.
If Ethereum (ETH) hits $7,000, the price of Ethereum Classic (ETC) will likely also increase. Because of the correlation between the two—as they share the same origin and are sometimes influenced by similar market sentiments—ETC usually moves when ETH spikes.
However, ETC's rate of increase is usually not as strong as ETH's, because ETC's ecosystem, utility, and investor appeal are not as large as ETH's. To give you an idea:
• At ETH's peak of around 4,800 USD in late 2021, ETC reached around 175 USD.
• If ETH reaches 7,000 USD, ETC could possibly be in the range of 200–300 USD, depending on market conditions and investor interest in ETC at that time.
Of course, these are just projections based on historical trends, and various external factors such as general market sentiment, network upgrades, and BTC price movements will also affect the price of ETC.
If Ethereum (*ETH*) reaches $7,000, the price of Polkadot (*DOT*) may also increase, but the prediction depends on the correlation and market dynamics between the two, which are not always linear or fixed.
Over several market cycles, DOT has traded at a certain ratio to ETH, despite DOT being newer and having high volatility. Here are some DOT price predictions based on historical ratios to ETH:
1. Ratio 0.01: DOT = 0.01 * 7,000 = $70
2. Ratio 0.012: DOT = 0.012 * 7,000 = $84
3. Ratio 0.015: DOT = 0.015 * 7,000 = $105
This is a simple estimate, and actual results may vary depending on factors such as Polkadot adoption, the development of the parachain ecosystem, and overall market conditions. In addition, demand for projects on the Polkadot network will also play a major role in determining the price of DOT.
