Us Cpi Jumps In September

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Us Cpi Jumps In September

Us Cpi Jumps 2.4% In September

slowdown was registered in the US headline inflation on an annual basis during September. This was still higher than the forecasts and has made things difficult for the Federal Reserve, which is thinking about more rate cuts.

According to the data, the US CPI in September was 2.4%. This was below the August's reading of 2.5% but still higher than the forecast of 2.3%.

Us Headline And Core Cpi Above Forecast

The inflation on a m/m basis was around 0.2%, similar to August's reading. However, the economists had made a forecast of 0.1% m/m for September.

Overall, the US inflation has cooled down, but it was still hotter than the forecasts made by the economists. Meanwhile, the core CPI actually moved up to 3.3% y/y, which was a jump from August's reading of 3.2%.

The core CPI has also moved higher on a monthly basis with trading of 0.3%, similar to last month's reading.

Elsewhere, other data shows a jump in the number of people filing for unemployment benefits for the first time. The reading for the week ending on 5th Oct was around 258K, higher than the last's week reading of 225K.

The inflation and the labor market data are released as the Fed is trying to achieve a soft landing for the economy. We also need to remember that a prolonged period of higher rates has left some serious effects on labor demand and economic activity.

Just a month ago, the US Federal Reserve made a 50 bps rate cut to the interest rate. At that time, the US central bank took action to help the jobs market.

However, the FOMC meeting minutes show that many members actually voted for a smaller rate (0.25%). This means there's a good chance that the next rate cut will be lower than 0.50%.

As of now, the odds of a 25 bps rate cut are 85%, while there's also a 14% chance that the rate will not be changed in November.

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