The Economic Information Daily reported on the 15th that U.S. inflation has heated up, and market expectations for a Federal Reserve rate hike this month have surged sharply. The CME FedWatch tool shows that traders now expect a 25-basis-point rate hike at the Fed's October meeting with a probability of 43.7%, while the probability of holding rates steady has dropped to 56.3%.
U.S. September Consumer Price Index (CPI) rose 3.7% year-on-year, higher than the market expectation of 3.6% and accelerating from August's 3.4%; on a month-on-month basis, it rose 0.6%, in line with expectations. Core CPI rose 2.6% year-on-year, exceeding the market forecast of 2.5%, reflecting that inflationary pressures remain persistent. After the inflation data release, expectations for higher U.S. interest rates intensified, with market concerns that interest rates may need to stay elevated for a longer period. (yc)
U.S. September Consumer Price Index (CPI) rose 3.7% year-on-year, higher than the market expectation of 3.6% and accelerating from August's 3.4%; on a month-on-month basis, it rose 0.6%, in line with expectations. Core CPI rose 2.6% year-on-year, exceeding the market forecast of 2.5%, reflecting that inflationary pressures remain persistent. After the inflation data release, expectations for higher U.S. interest rates intensified, with market concerns that interest rates may need to stay elevated for a longer period. (yc)
