The Federal Reserve is still concerned about the U.S. inflation as the next rates movement depends on the CPI strength. In October, lower energy prices should reduce U.S. headline inflation to –0.3% M/M and 1.5% y/y from 2.1% y/y in September. Piet Lammens, economist at KBC Bank said that regarding CPI, headline inflation (consensus –0.3% M/M) will benefit from lower energy prices and drop, while core inflation (0.2% M/M) should rise moderately. “It is tempting to set the risks on the downside following the PPI results, released on Tuesday, but we shouldn’t forget that there is no strong monthly correlation,” he added.