US consumer prices rose 3.7% in September, increasing the odds of another Federal Reserve rate rise later this month and adding pressure before the midterm elections.
01Summary
- 01Annual inflation rose from 3.4% in August to 3.7% in September, while prices increased 0.6% month on month.
- 02Petrol prices rose 9.1% in September and were 34.2% higher than a year earlier, accounting for more than half of the monthly CPI increase.
- 03The average US petrol price was $4.33 a gallon, compared with $4.31 a month earlier, while diesel averaged $6.29 a gallon.
- 04The Federal Reserve raised rates by 25 basis points last month to 3.75-4.00%, and CME FedWatch put the chance of rates staying put at 52.9%.
- 05US markets fell after the report, with the Nasdaq down 0.8% and the S&P 500 down 0.6% in midday trading.
02Why it matters
Higher inflation may lead to more expensive borrowing costs for households and businesses if the Federal Reserve acts again. It also raises political pressure on Republicans ahead of the November 3 midterm elections.
Pulse AIAsk about this story
Answers are generated by AI from the story summary; they are not investment, health or legal advice.
