US inflation rises to 3.7 per cent year-on-year in September, exceeding forecasts
Analysts had forecast a 3.6 per cent increase year-on-year. On a month-on-month basis, prices rose by 0.6 per cent
Inflation in the United States picked up pace in September. The Consumer Price Index (CPI) rose by 3.7 per cent year-on-year, up from 3.4 per cent the previous month, compared with estimates of 3.6 per cent. On a month-on-month basis, it rose by 0.6 per cent, in line with expectations.
‘Core’ figures – excluding energy and food – rose by 0.3 per cent (compared with the expected 0.2 per cent) and by 2.6 per cent year-on-year (compared with the consensus forecast of 2.5 per cent), following 2.4 per cent the previous month. The energy price index rose by 5.2 per cent, representing an annual increase of 20.4 per cent. The food price index remained stable in September and rose by 2.5 per cent year-on-year.
Wall Street: futures down, Treasury yields rise
Futures on Wall Street have turned negative. S&P 500 futures are down 0.2 per cent, whilst Nasdaq-100 futures have fallen by 0.5 per cent. Futures on the Dow Jones Industrial Average are down 0.1 per cent. Following the release of the consumer price index report, yields on Treasury bonds have risen, having hit multi-year highs last week.
The report comes at a time when oil prices remain high and consumers are paying more for petrol, which averages $4.34 a gallon, compared with $3.08 a year ago. Last week, President Donald Trump announced a temporary easing of restrictions on Russian diesel exports, but analysts do not believe the agreement will do much to reduce fuel prices for lorry drivers and farmers.
