US consumer price index report for October due Tuesday

What happened

A key gauge of where US inflation stood in October is scheduled for release on Tuesday. Forecasts point to a 0.3% increase in the headline consumer price index reading and a 0.2% increase in the core measure, which strips out more volatile components.

The release is being watched as the main update on the pace of price growth for the month.

Why it matters

Consumer price data is one of the main inputs markets use to judge the path of US interest rates. A reading that differs from what economists expect can shift expectations for monetary policy, and those expectations feed into the dollar, Treasury yields and equity valuations.

Gold, which pays no yield, is sensitive to changes in real interest rates and to moves in the dollar, so inflation prints tend to be a recurring source of volatility for the metal. Crypto and stock indices are also exposed through the broader liquidity and risk-appetite channel, since repricing in rate expectations usually travels across asset classes at the same time.

What to watch

The October consumer price index itself on Tuesday, with attention on both the headline figure and the core measure relative to the forecasts cited in the report.