Financial Times FT.com

Inflation slowdown raises rate cut hope

By Eoin Callan and Krishna Guha in Washington, Tony Tassell in London and Ralph Atkins in Frankfurt

Published: November 16 2006 14:38 | Last updated: November 16 2006 19:12

Inflation slowed sharply in the US last month, new figures showed on Thursday, easing the pressure on the Federal Reserve and raising expectations of an interest rate cut next year.

The core consumer price index rose 0.1 per cent in October, its lowest monthly increase since inflation began to accelerate in the spring.

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