Inflation, September and gas prices
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Today’s CPI report came in hot, with annual headline inflation reaching its highest level since May,” said etoro’s Bret Kenwell.
Even when excluding food and energy costs, inflation was still firmer in September. Core CPI inflation rose 0.3% month over month in September. Economists had projected that core inflation would rise just 0.
Markets were not yet pricing in a likelihood that the Fed hikes rates later this month on the back of the hotter-than-expected CPI report.
Fed officials are more than 60% likely to hold benchmark rates steady at this month’s policy meeting in spite of high inflation data, CME FedWatch Tool figures show.
September's CPI report shows inflation rising to 3.7%, driving up 10-year Treasury yields. See how energy costs and Fed rate forecasts impact mortgage rates in 2026.
UBS expects Fed hikes in December and March, extending monetary tightening. September's annual inflation rate reached 3.7%, above economists' 3.6% forecast. Markets price an 89.5% chance of another hike in December, CME data shows.
Yields jump after latest CIP report.
By Leika Kihara and Takahiko Wada TOKYO, Oct 2 (Reuters) - Annual core inflation in Japan's capital accelerated in September at its fastest pace in 10 months, highlighting mounting price pressure and bolstering the case for further interest rate hikes from the central bank.