US consumer inflation hotter than expected as midterms loom
US consumer inflation was hotter than anticipated in September, government data showed Wednesday, as Washington's continued war with Tehran pushed energy costs higher, deepening strains on American households ahead of next month's midterm elections. The uptick underscores voter worries over high costs of living, and comes as President Donald Trump is campaigning in US states to shore up support…
US consumer inflation exceeded expectations in September, fueling concerns ahead of the upcoming midterm elections, according to government data released on Wednesday. The Consumer Price Index (CPI) rose 3.7% year-on-year, surpassing the 3.6% forecast by analysts, signaling a rapid acceleration from 3.4% in August. The significant increase in energy costs, primarily driven by gasoline and diesel prices, was a major contributor to the inflation spike, as the ongoing conflict between the US and Iran escalated.
Gasoline costs surged by 9.1% in September, while diesel prices jumped by 67.7%, impacting the transportation sector and increasing consumer costs. Despite the higher-than-expected inflation reading, many analysts anticipate the Federal Reserve will proceed cautiously with its policy decisions, considering a "slow and steady" approach.
The odds of another interest rate hike by the Federal Reserve during their Oct. 27-28 policy meeting now stand at 37.1%, up from 22% a day earlier.
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