US September inflation rises to 3.7%, above forecasts, as stocks fall
In short
US consumer prices rose 3.7% from a year earlier in September, above the 3.6% forecast, Korean outlets reported after the October 14 release. Core inflation reached 2.6%, while the Nasdaq fell 1.88% as markets reacted to inflation, oil prices and weakness in AI-related shares.
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US annual consumer-price inflation accelerated to 3.7% in September from 3.4% in August, according to Korean outlets reporting the US Bureau of Labor Statistics release on October 14. The reading exceeded the 3.6% market forecast. Prices rose 0.6% from the previous month, matching expectations but increasing faster than August's 0.4% monthly rise. [ 7 , 16 ]
Core CPI, which excludes volatile food and energy prices, rose 2.6% from a year earlier, compared with 2.4% in August. Its monthly increase was 0.3%. Both core readings exceeded forecasts of 2.5% annually and 0.2% monthly, according to Maeil Business and Seoul Economic Daily. [ 7 , 16 ]
Gasoline prices rose 9.1% in September, accounting for more than half of the overall monthly CPI increase, Seoul Economic Daily reported. The outlet also reported a 0.3% increase in medical services prices and a 0.7% rise in used-car prices. Bloter reported that housing costs, including hotel and motel accommodation, increased 0.4%. [ 16 , 22 ]
Seoul Economic Daily said the figures renewed uncertainty over monetary policy ahead of the Federal Reserve's October 27–28 meeting. It reported that this was the last CPI release before that meeting. The newspaper said the Fed had raised rates in September and officials wanted to assess several economic indicators before deciding on further action. [ 16 ]
US stock indexes ended October 14 lower. The S&P 500 fell 1.11%, the Nasdaq 1.88% and the Dow 0.09%, according to Asia Economy and Newsis. Newsis linked the declines to above-forecast consumer inflation, rising oil prices and weakness in AI-related stocks. It reported that gains in major healthcare shares limited the Dow's decline. [ 24 , 26 ]
Why it matters
Reports say the higher inflation reading renewed attention to possible further Federal Reserve interest-rate increases. Gasoline accounted for more than half of the monthly CPI rise, while prices also increased outside energy.
Key facts
- September CPI rose 3.7% year on year and 0.6% month on month. [ 2 , 7 , 16 ]
- Core CPI excluding food and energy rose 2.6% annually and 0.3% monthly. [ 5 , 7 ]
- Annual headline inflation increased from 3.4% in August, while core inflation rose from 2.4%. [ 5 , 16 ]
- Gasoline prices rose 9.1% in September and accounted for more than half the monthly CPI increase. [ 16 , 22 ]
- On October 14, the S&P 500 fell 1.11%, the Nasdaq 1.88% and the Dow 0.09%. [ 24 , 26 ]
Confirmed by several sources
Still unclear
- Whether the Federal Reserve will raise interest rates again at its October meeting. Reports discuss a greater possibility of tightening, but provide no announced October rate decision.