(Bloomberg) -- Here are the key takeaways from the October US CPI report released Tuesday:

• Consumer prices rose at a slower-than-expected pace across the board: CPI was flat from the prior month and up 3.2% from the prior year. On a core basis, which excludes food and fuel, prices were up 0.2% on the month and 4% on the year.
• There was more good news in supercore, a measure the Federal Reserve closely tracks that includes core services minus housing. That gauge rose at about a third the pace of September, the slowest pace since July and the biggest monthly deceleration since October last year. On an annual basis, it was the weakest increase since December 2021.
• Core services remained hot, with shelter contributing the most to the CPI reading; food also boosted the monthly reading. Energy costs went negative after two months of outsize gains, reflecting the drop in oil prices. Used vehicle prices also fell.
• The report marks an important milestone for the Fed in its fight against inflation, with welcome easing across categories. Policymakers will be looking to see more slowing in the service category as their rate hikes weigh on demand.
• Stocks soared after the report, with S&P 500 futures up 1.3% as the market took the cooler-than-expected reading as a sign the Fed can take a rate hike off the table. Treasury yields plunged, with 2-year yields down about 20 basis points and 10-year yields down about 18 points.

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