US Headline CPI Expected to Rise to 3.7% in September on Energy Costs

Key Facts

1US annual headline CPI is expected to rise to 3.7% in September, driven by a significant jump in energy costs.

2Core inflation is forecast to remain steady at 2.4% annually, with monthly growth slowing to 0.2%.

3Odds of an October Fed rate hike have fallen to approximately 25% following weak September payroll data.

US annual headline CPI is expected to rise to 3.7% in September, driven by a significant jump in energy costs. According to investinglive.com, core inflation is forecast to remain steady at 2.4% annually, while the monthly growth rate for the core metric is expected to slow to 0.2%.

Odds of a Federal Reserve rate hike in October have fallen to approximately 25% following weak September payroll data. This divergence in inflation metrics occurs as Brent crude prices remain above $100 per barrel due to geopolitical tensions and infrastructure attacks, which have intensified the impact of energy costs on the headline index.