The US Consumer Price Index rose 3.2 percent year-on-year in October, below market expectations of 3.4 percent, according to the Labor Department. Core inflation excluding food and energy slowed to 2.8 percent from 3.1 percent in September, marking its lowest level in two years. Energy prices fell 2.1 percent while shelter costs remained sticky at 6.7 percent. The data prompted markets to trim rate-hike bets, sending the S&P 500 up 1.2 percent overnight. Economists see scope for the Federal Reserve to hold rates steady into early 2026 if disinflation persists.