U.S. Core Consumer Prices Rise More Than Expected In September
Traders priced in higher odds of another Federal Reserve rate hike after core inflation rose 2.6%, beating forecasts and lifting U.S. yields.
- On Wednesday, October 14, 2026, the dollar rallied after Labor Department data showed consumer inflation rose faster than expected in September, firming expectations for a Federal Reserve rate hike as early as this month.
- September's core CPI rose 0.3 per cent monthly and 2.6 per cent annually, both exceeding Economists' forecasts, while the headline rate reached 3.7 per cent. Domestic price pressures are "becoming more entrenched" rather than easing, said Schroders economist George Brown.
- The dollar index rose nearly 0.4 per cent, while two-year Treasury yields jumped 7 basis points to 4.872 per cent from around 4.77 per cent. Futures trading measured by CME's FedWatch tool puts October rate-hike odds at 43.7 per cent.
- Traders increased bets on a Fed rate rise this month to around 47 per cent from 20 per cent prior to the data, according to LSEG data. This reflects growing market confidence in additional monetary tightening before year-end.
- International Monetary Fund official Kristalina Georgieva urged America to make fiscal adjustments to put its debt on a "more sustainable path," while market pricing shows greater than 95 per cent odds of at least one rate hike before year-end.
17 Articles
17 Articles
October Consumer Price Index: Hotter than expected
THOUSAND PALMS, Calif. (KESQ) — October CPI reports released this morning show inflation outpacing forecasts, with readings exceeding expectations by 10 basis points in nearly every category. Month-over-month core CPI came in above the 0.2% forecast at 0.3%. Year-over-year core CPI also exceeded expectations, coming in at 2.6%, compared with a forecast of 2.5%. Month-over-month
U.S. Core Consumer Prices Rise More Than Expected In September
While the Labor Department released a report on Wednesday showing consumer prices in the U.S. grew in line with estimates in the month of September, the report also showed a bigger than expected increase in core consumer prices, which exclude food and energy prices. The report said consumer prices climbed by 0.6 percent in September after rising by 0.4 percent in August.
️ The dollar rose to its highest in more than a year after strong inflation data
The dollar rose sharply, with stocks and bonds under pressure due to strong US inflation data. Core CPI rose 0.3% in September compared to August, compared with a forecast of 0.2%. Traders have raised their estimate of the likelihood of a Fed rate...
Coverage Details
Bias Distribution
- 62% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
