US inflation exceeded expectations: Sharp drop in gold prices

The US Bureau of Labor Statistics (BLS) announced consumer inflation data for the period September 2026.

CPI increased by 0.6 percent monthly, seasonally adjusted, in September. The monthly increase in August was 0.4 percent.

Annual inflation increased from 3.4 percent to 3.7 percent.

Market expectation was that monthly inflation would be 0.6 percent and annual inflation would be 3.6 percent. Thus, headline inflation exceeded expectations on an annual basis.

Energy prices were the determining factor in the increase in inflation in September. While gasoline prices increased by 9.1 percent monthly, this increase constituted more than half of the total increase in monthly CPI.

Energy prices overall increased by 5.2 percent in September. The energy index increased by 2.1 percent in August. The increase in energy prices in the last 12 months reached 20.4 percent.

Core CPI, which excludes food and energy prices, increased by 0.3 percent monthly in September. Core inflation was 0.3 percent monthly in August. Annual core inflation increased from 2.4 percent to 2.6 percent.

Market expectation was that annual core inflation would remain around 2.4 percent.

The housing index increased by 0.4 percent monthly in September. In August, the increase was 0.3 percent. Food prices did not change on a monthly basis. While out-of-home food prices increased by 0.2 percent, food consumed at home prices decreased by 0.1 percent. The annual increase in food prices was recorded as 2.5 percent.

Among the items that pushed core inflation up in September were entertainment, second-hand cars and pickup trucks, education, flight tickets, health services and clothing. Communication prices were one of the main items that decreased during the month.

The annual acceleration of both headline and core inflation in the USA will be closely monitored in terms of expectations regarding the Fed's interest policy in the remaining part of the year.

Gold, which started the day at $ 4,162 per ounce, fell sharply after the announcement of US inflation data. An ounce of gold fell to the level of $ 4,114, carrying its loss during the day to approximately $ 48.

Annual headline and core inflation, which came above expectations, strengthened the expectation that the Fed could maintain its tight monetary policy and created selling pressure on gold prices.