The Federal Reserve's preferred measure of inflation edged higher in October, thanks in part to an ongoing boom in consumer spending that is challenging the central bank's effort to tame price pressures.

The Bureau of Economic Analysis' PCE Price Index report Wednesday showed core prices rose at an annual rate of 2.8% last month, just ahead of the September reading of 2.7% and matching Wall Street's 2.8% forecast.

Core pressures, which strip away volatile food and energy prices, were up 0.3% on the month, compared with September's 0.3% gain and Wall Street's consensus estimate of 0.3%.

Markets focus on the core PCE inflation reading, which the Fed considers a more accurate representation of overall price pressures, as it incorporates changes in consumer spending patterns.

The BEA's headline PCE inflation index sped to an annual rate of 2.3%, matching Wall Street's estimate and coming in modestly higher than the 2.1% pace recorded in September. Prices were up 0.3% on the month, the BEA said, following a 0.2% reading in September.

The BEA also noted that personal incomes for September rose 0.3%, matching the revised 0.3% pace in August, reflecting the stable labor market. Spending accelerated 0.4% compared with the upwardly revised 0.6% gain over September.

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U.S. stocks were little changed following the data release, with the S&P 500 down 9 points, or 0.15% and the Dow gaining 60 points. The tech-focused Nasdaq was last marked 85 points, or 0.44% lower on the session.

Benchmark 10-year note yields marked at 4.256% following the data release, while 2-year notes were pegged at 4.219%.

The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.72% lower on the session at 106.251

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CME Group's FedWatch, meanwhile, suggests a 66.1% chance of a quarter-point interest rate cut from the Federal Reserve next month in Washington, with the odds of a follow-on move in January pegged at just 15%.

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