U.S. CPI rose 3.7% year-on-year in September

China News Service, Washington, October 14 (Reporter Chen Mengtong) Data released by the U.S. Department of Labor on the 14th showed that the U.S. Consumer Price Index (CPI) rose by 3.7% year-on-year and 0.6% month-on-month in September.

After excluding volatile food and energy prices, the U.S. core CPI rose 0.3% month-on-month in September, the same increase as August; it rose 2.6% year-on-year, higher than the 2.4% year-on-year increase in August.

Bloomberg News said that the U.S. CPI rose to a five-month high in September, and core CPI growth, which reflects potential price pressure, was also higher than expected. As the November midterm elections approach, inflation continues to squeeze American household budgets.

Judging from month-on-month data, in September, the U.S. gasoline price index rose by 9.1%, contributing more than half of the overall CPI increase that month. The overall energy price index rose 5.2%, up from a 2.1% gain in August. The housing price index rose 0.4%, up from a 0.3% gain in August. The food price index remained unchanged month-on-month in September.

The Wall Street Journal quoted economists as saying that the September inflation report sent a worrying signal: the price shock caused by the war in the Middle East may not be a one-time event, and unless the Federal Reserve takes action, high inflation may continue.

After the release of the above-mentioned inflation data, the market increased bets that the Federal Reserve would raise interest rates in October. The Chicago Mercantile Exchange's FedWatch Tool shows that the market expects the probability of the Fed raising interest rates in October to be about 41.5%, up from 22.1% one day ago. (over)