U.S. Inflation Surprises to the Upside, Putting Future Fed Moves in Question

By: Tomas Ronolski - AllPennyStocks.com News

Thursday, October 10, 2024

U.S. inflation was stronger than expected in September, with year-over-year headline consumer price inflation registering a gain of 2.4 percent and a monthly gain of 0.2 percent. The core CPI, which excludes volatile food and energy prices, rose by 3.3 percent annually. While inflation was higher than estimates, it is still at a multi-year low.

Food costs offset the declines in energy prices. Food costs rose 2.3 percent for the year, while energy prices fell by 6.8 percent, pressured by falling gasoline prices, which were down by 15.3 percent. For the month, energy prices were lower by 1.9 percent.

Overall, services remained the largest inflationary pressures. Shelter costs rose 4.9 percent year-over-year, and transportation services experienced a sharp 8.5 percent increase, primarily driven by motor vehicle insurance costs.

Ahead of the U.S. presidential election and as the Federal Reserve determines the pace of future rate cuts, these figures suggest that while headline inflation is moderating, underlying price pressures in certain services remain a concern for policymakers.

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