Consumer prices rose 3.7% annually in September as gas prices skyrocket
The consumer price index was expected to increase 0.6% in September on a monthly basis and 3.6% from a year ago, according to the Dow Jones consensus forecast.
TL;DR
- The consumer price index rose 0.6% in September, with the annual rate at 3.7%.
- Energy costs, especially gasoline prices, were the main driver of the increase.
- Core CPI, excluding food and energy, rose 0.3% monthly and 2.6% annually.
- Market futures turned negative, and bond yields rose sharply following the report.
- Odds of a Federal Reserve rate hike in October increased to around 54%, with over 96% chance of a hike before year-end.
- Inflation has remained above the Fed's 2% goal since March 2021.
- President Trump's tariffs and demand from AI build-out also contributed to price pressures.