US inflation rate rises to 2.6 percent in September


(MENAFN) In October, the inflation rate in the United States rose to 2.6 percent, up from 2.4 percent in September, according to the latest data from the labor Department. This increase aligns with expectations, indicating growing inflationary pressures within the US economy. The rise in inflation reflects the ongoing challenges the country faces in controlling price increases.

The core Consumer Price Index (CPI), which excludes volatile food and energy prices, also increased by 3.3 percent, matching expectations for an annual gain of 3.3 percent. This rate remained consistent with the September figures, raising concerns about the persistence of inflationary pressures in the US economy, which continue to affect both consumers and businesses.

On a monthly basis, the core CPI remained stable at 0.3 percent, in line with market expectations and unchanged from the previous month, further highlighting the ongoing inflationary trends. This steady increase in core inflation suggests that price pressures are not easily subsiding.

The release of the CPI data comes after a week of significant market movements following the US election. The election outcome had a considerable impact on the market, with President-elect Donald Trump signaling a tough stance on trade, particularly with China. His approach, including the appointment of hawkish figures to key positions, suggests a shift toward higher tariffs, which could further drive inflation and potentially lead to higher interest rates. The FedWatch tool now shows markets expecting a 62 percent chance of a 25 basis point rate cut in December, a decrease from the 83 percent chance predicted a month ago.

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