China's 5.7% Factory Inflation Could Complicate the Fed Path Before US CPI

China’s October factory-gate inflation rose to 5.7%, driven by higher oil costs, a reading that lands just before the U.S. CPI release and could complicate the Federal Reserve’s policy path. Traders are now focused on the upcoming U.S. inflation data and the odds of a December rate hike, with the Chinese producer price figure adding to the global cost-pressure backdrop the Fed must weigh. The timing matters because it arrives before the U.S. CPI print that will shape market expectations for the Fed’s December decision. What to watch next is the U.S. CPI release and any shift in December hike odds.