September CPI Surpasses Expectations With a 3.7% Increase: How Will the Fed React?
The annual inflation rate stood at 3.7% in September, exceeding the expected 3.6% increase.
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Gold prices soared to a two-week high on Friday on hopes that the Fed's plans to skip a rate hike will remain unchanged after the new CPI data.
The annual inflation rate stood at 3.7% in September, exceeding the expected 3.6% increase.
In September, the Producer Price Index saw the sharpest increase since April, pointing to persisting inflationary pressures.
The PCE price index increased by 0.4% vs. an estimated 0.5% monthly. Likewise, core PCE price index increased by 0.1% vs. an estimated 0.2%.
Oil prices are likely to hit $100 a barrel, Chevron CEO predicted, amid worsening supply constraints.
The US dollar index soared to a 6-month high on Thursday after fresh economic data in the US and Europe.
The latest inflation figures have led traders to believe that the Federal Reserve will pause in September.
How will regimented volatility play out ahead of the CPI data?
In the short-run, energy stocks are outperforming the S&P 500.
The odds of skipping a rate hike in September currently sit at 88.5%, per fed funds futures data.
The 30-year mortgage rate rose to 7.48% this week, marking the highest level in 20 years.
CPI print showed inflation rose to 3.2% annually in July, compared to the expected 3.3%.
The odds of US soft landing are rising as Fed's preferred gauge of inflation fell considerably in June to 4.1%, from 4.6% in May.