ChainThink reports that the U.S. Bureau of Labor Statistics will release the September CPI data tonight at 20:30.
Institutions expect the overall CPI year-over-year increase to rise from 3.4% in August to 3.6%, with a month-over-month gain of 0.6%, marking the largest increase in nearly five months, primarily driven by a rebound in energy prices;
Core CPI is expected to rise 2.5% year-over-year and 0.2% month-over-month, below the prior value of 0.3%. This is the final inflation report before the Fed’s interest rate meeting on October 27–28.
CME data shows that the market currently estimates a roughly 17% probability of a Fed rate hike in October. If core CPI rises by 0.3% month-over-month, it could strengthen expectations for a rate hike this month;
If the data aligns with the 0.2% expectation, the Fed may hold off on action and delay the rate hike decision until December. The U.S. will release PPI data on Thursday; both CPI and PPI will influence market perceptions of future inflation trends and the Fed’s policy path.
