U.S. consumer prices rise 2.7 percent..."Chances are high for additional rate cuts"

U.S. consumer price growth is in line with market expectations, and the Fed is expected to start further rate cuts next week as scheduled.

The Consumer Price Index, released by the U.S. Labor Department, was up 2.7% compared to the same month last year and 0.3% compared with the previous month.

Excluding volatile energy and food products, the core consumer price index also rose 3.3% compared to the same month last year and 0.3% compared to the previous month.

Both the representative and core indexes were in line with expert expectations compiled by Dow Jones.

As a result, markets expect an additional 0.25%p cut in interest rates at the Fed's Open Market Committee, scheduled for next week.

The Chicago Mercantile Exchange's Padwatch, which forecasts the Fed's interest rate policy, has increased its chances of a further 0.25%p rate cut from 89% to 99% since the release of the Consumer Price Index.