CME Group FedWatch's Dec hike probability rose above 50% on CPI

The probability of a 25 bps rate hike in December rose to 51%, according to the CME Group FedWatch tool, which calculates unconditional probabilities of Federal Open Market Committee (FOMC) meeting outcomes to generate a binary probability tree.

Today's data from the U.S. showed that consumer inflation grew more than expected with the monthly CPI advancing to 0.4% in August from 0.1% in July and coming in at 1.9% on a yearly basis. Ahead of the data, the CME Group FedWatch showed that markets were pricing a 42% chance of a December hike. 

• US: CPI for all items rises 0.4% in August as shelter and gasoline indexes increase