US Consumer Prices Rise More than Expected in September

The trend of disinflation appeared to slow in September, with the Consumer Price Index rising +0.2%, stronger than the +0.1% projected and flat compared to the +0.2% increase in August, according to the US Bureau of Labor Statistics.

The annual rate rose to 2.4%, slightly warmer than expectations of 2.3%, but down slightly from 2.5% previously.

Core CPI, which excludes food and energy rose +0.3% versus +0.2% expected and +0.3% previously. Year-over-year, Core CPI printed at +3.3% versus expectations of +3.2%, and +3.2% the prior month. The so-called SuperCore CPI also increased on a year-over-year basis to +4.6%.

Investors are closely monitoring the progress in reducing inflation, as it may have significant implications for Federal Reserve policy. Traders have reduced their expectations for the central bank to implement another interest-rate reduction next month, with market prices currently suggesting that there is a nearly one-in-five likelihood that it will maintain its current rate.