The inflation report allows the Fed to follow a 0.5-point interest rate rise in December

The October inflation report is likely to keep Federal Reserve officials on track to approve a half-percentage-point rate hike next month, scaling back from the recent pace of unusually steep rate hikes.

The Ministry of Labor reported on Thursday that consumer prices rose at a slower pace in October than in recent months. Core prices, which exclude volatile food and energy items, rose 0.3% from September, the smallest monthly increase in a year, and at 6.3% year-on-year, down from 6.6%.