@newdlenews: September CPI came in hot at 3.7% annually, beating forecasts and pushing the odds of an October Fed rate hike to nearly a coin flip. The Bureau of Labor Statistics reported Wednesday that consumer prices rose 3.7% in the year through September, up from 3.4% in August and above the 3.6% economists expected. Core inflation reached 2.6% against an expected 2.5%. It’s the highest annual reading since May. Energy is the main driver. Gasoline rose 9.1% in a single month and accounted for more than half of the increase. Year over year, energy is up 20.4%, gasoline 34.2%, and heating oil 74.2%, with costs tied to the Iran war. Airfares are up roughly 22%. Goldman Sachs estimates that the AI buildout has also lifted semiconductor and electronics prices, adding about half a percentage point to annual inflation. Markets reacted right away. Futures put the odds of a hike at the Fed’s Oct. 27–28 meeting at roughly 44%–49%, up from about 19% before the release. The two-year Treasury yield rose 13 basis points to about 4.93%, and the 10-year rose 9 to 5.304%. Fed Chair Kevin Warsh said inflation “is too high and has been for too long.” Inflation has stayed above the Fed’s 2% target since March 2021. The report arrives weeks before the midterms, when nine in 10 Americans cite prices as the top factor shaping their economic views, according to a CBS News poll.

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2026-10-15 16:48:41

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