Macro EconomyMedium•14 October 2026•
1 min read
US Inflation Beats Expectations, Driving Treasury Yields and Dollar Higher
Key Facts
1US CPI rose higher than expected, driven by substantial increases in energy costs and firmer services inflation.
2Gasoline prices jumped 9.1% in September, while fuel oil rose by 15.3%.
3US 2-year Treasury yields surged to 4.9266% as traders price in two rate hikes by January.
US consumer price inflation rose higher than anticipated in September, driven by substantial increases in energy costs and firmer services inflation, according to investinglive.com. Gasoline prices jumped 9.1% during the month, while fuel oil costs surged by 15.3%, signaling persistent inflationary pressure.
US 2-year Treasury yields surged to 4.9266% as traders began pricing in two interest rate hikes by January. In equity markets, the NASDAQ 100 index fell 0.75% and the NASDAQ composite dropped 0.60%, while the Dow Jones Industrial Average bucked the trend with a 0.14% gain.