Consumer prices rose less than expected in the United States in the 12-month measurement, according to official data published late Friday due to the ongoing closure of public services.
He consumer price index (CPI) had an increase of 3% in the moving year ended in September, from 2.9% in August, the Department of Labor reported in a statement. Compared to August, prices increased.
The core inflationwhich excludes items considered volatile such as food and energy, moderated during the month, to 0.2%, and during the year, to 3% (compared to 3.1% the previous month).
The Labor Department was scheduled to publish its index on September 15, but the US government shutdown caused a postponement.
However, this is the only macroeconomic indicator released by the federal government since the beginning of the month. It is essential data, because Americans’ retirements are adjusted based on the CPI.
It was also a long-awaited indicator for Wall Street.
“Inflation remains a concern, particularly with respect to the Fed’s possible decision to cut interest rates again,” Adam Sahran, an analyst at 50 Park Investment, told AFP.
The Federal Open Market Committee (FOMC) will meet Tuesday and Wednesday of next week, and markets anticipate a new rate cut of 0.25 points, which would place its reference rates in an expected range of 3.75% to 4%, according to CME’s FedWatch tracking tool.
“If you look at consumer prices right now, they are going down,” Tim Urbanowicz of Innovator Capital Management told AFP before the CPI was published.
However, “inflation needs to not only remain stable, but to decrease for this rate cut to be justified,” he added.
