WASHINGTON (dpa-AFX) - The U.S. dollar climbed higher on Wednesday, recording strong gains against its major counterparts, after data from the Labor Department showed consumer prices in the country rose more than expected in the month of October.
The data showed consumer price index jumped by 0.9% in October after rising by 0.4% in September. Economists had expected consumer prices to climb by 0.6%.
Excluding higher prices for food and energy, core consumer prices still increased by 0.6% in October after inching up by 0.2% in September. Core prices were expected to rise by 0.4%.
The data said the annual rate of growth in consumer prices accelerated to 6.2% in October from 5.4% in September, reaching the highest level since November of 1990.
The annual rate of growth in core prices also accelerated to 4.6% from 4%, reflecting the biggest jump in prices since August of 1991.
The acceleration in the rate of consumer price inflation has raised concerns about the outlook for interest rates even though the Federal Reserve has signaled it will not be in a hurry to begin raising rates.
St. Louis Fed President James Bullard told Fox Business Network on Monday that the central bank is likely to raise rates twice next year after ending its bond purchase program.
If inflation is more persistent, the Fed may have to take action a little sooner to keep it under control, Bullard added.
Another report from the Labor Department showed initial jobless claims edged down to 267,000 in the week ended November 6th, a decrease of 4,000 from the previous week's revised level of 271,000. Economists had expected jobless claims to dip to 265,000 from the 269,000 originally reported for the previous week.
Jobless claims decreased for the sixth consecutive week, once again falling to their lowest level since hitting 256,000 in the week ended March 14, 2020.
The dollar index has climbed to 94.89, gaining almost 1%.
Against the Euro, the dollar is trading at 1.1483, gaining nearly 1%.
The dollar is up more than 1.1% against Pound Sterling, at $1.3408, compared to Tuesday's close of $1.3557.
The dollar is trading at 113.88 yen, firming from 112.88.
Against the Aussie, the dollar is trading at 0.7325, firming from 0.7378.
The Swiss franc is weaker by nearly 0.8% at 0.9180 a dollar, while the Loonie is at 1.2493 a dollar, easing from 1.2438.
Copyright RTT News/dpa-AFX
© 2021 AFX News
