Skip to content Skip to footer

September CPI data drops today. What to expect?

The anticipated US CPI will be released today by the Bureau of Labour Statistics (LBS) at 12:30 GMT.

US Consumer Price Index (CPI) drops on Thursday. Investors are growing uncertain of the US economy as the Fed affirms they’re almost at the end of interest rate hikes.

CPI may reveal lower annual headline

The anticipated US CPI will be released today by the Bureau of Labour Statistics (LBS) at 12:30 GMT.

The numbers are likely to show that prices have continued to increase far more quickly than the Fed expected. Conservatively, a rise of 0.3% on the month after surging 0.6% in August.

Headline inflation is predicted to rise 3.6%, a 0.1% drop from last month. Core rate, which excludes the food and energy sector, may also slip from 4.1% from 4.3%.

Generally, the numbers sound good to the Federal Reserve who’s in a war with the economy to get inflation down to 2%. However, economists are sceptical that the Fed may raise its benchmark key fund rate when it meets again in November.

Read more: Bitcoin trades sideways, macroeconomic factors may push price lower

FOMC officials noted that they still one more 25 basis point rate hike before the end of the year, with the rate peaking at the 5.50% to 5.75% range.

“We’re prepared to raise rates further if appropriate, and we intend to hold policy at a restrictive level until we’re confident that inflation is moving down sustainably toward our objective,” Fed Chair Jerome Powell said in the post-meeting press conference.

Despite this, it’s still not clear the impact geopolitical instability and conflicts may have on the upcoming months. Unrest in the Middle East may ignite further increase in oil prices and energy costs which was responsible for the significant increase in last month headline data rise.

Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

Leave a comment

Go to Top