US inflation likely accelerating, pushing Fed toward rate hikes
September headline CPI is expected to rise 3.6% from a year ago, signaling acceleration.
Wednesday's US inflation report is expected to show prices climbing further. The Federal Reserve's goal is 2%.
Economists surveyed by Dow Jones predict headline consumer prices rose 0.6% for the month and 3.6% compared with a year earlier. That year-over-year increase signals acceleration in the wrong direction for policymakers.
Core inflation strips out volatile food and energy. It is expected to rise 0.2% from August and 2.5% year-over-year.
Energy costs have been among the biggest drivers of inflation since the US-Israel war with Iran began. Brent crude climbed more than 14% in September.
The Fed is likely to raise interest rates again. Traders are betting the central bank will hike in December.
- 3.6%
- Expected headline CPI year-over-year
- More than 14%
- Brent crude September increase
- $105 per barrel
- Brent crude price Tuesday
- 2%
- Fed inflation target
Why it mattersHigher US interest rates ripple through global markets and affect borrowing costs worldwide, shifting investment returns and currency values.
AustraliaA stronger US dollar from Fed rate hikes makes Australian exports more competitive but increases the cost of imported goods and services.
✓ Claims checked against the source and corrected before publish. checked 3 h ago
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