United States inflation overshoots, rises by 0.4% in September forexnews inflation usa
The latest US CPI data released today showed a higher-than-expected increase, but on an annualized basis fell by 0.1% down to 8.2%, the lowest 12-month inflation figure recorded since FebruaryHowever, the high month-on-month increase of 0.4% when only 0.2% had been expected was certainly taken as bad news by the market, suggesting that inflation is not under control and that the Fed will need to hike rates by even more than is already expected., with the 2-year treasury yield exceeding 4.
Overall, the energy index was reduced by 2.1% in the latest figures, after falling more steeply in August by 5%.the annualized energy index tells the full story, as it increased by 19.8% in September, alongside the gasoline index which has also risen by a huge 18.2%, with electricity also rising by 15.5% over the past 12 months. The rise in electricity prices is especially worrying.
The latest figures are likely to further encourage the hawkish attitude of the Federal Reserve, leading to continued interest rate hikes. “Many participants emphasized that the cost of taking too little action to bring down inflation likely outweighed the cost of taking too much action,” the minutes revealed.
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