The story so far
- Public Inflation Expectations Jump to 3-Year High5 sources
- Fed's Hammack Says Rates May Need to Rise7 sources
- Hotter Inflation Data Sends Rate-Hike Bets SoaringYou are here
- US Inflation Rises to 3.7% in September63 sourcesLatest
Updated 3h ago · Business
Hotter Inflation Data Sends Rate-Hike Bets Soaring
U.S. consumer prices rose 3.7% in September from a year earlier, Labor Department data showed Wednesday. That beat economists' forecasts.
- 0.6% monthly rise in headline CPI, matching forecasts.
- 2.6% annual core inflation, versus 2.5% expected.
- 0.3% monthly core gain, above the 0.2% forecast.
- Gasoline prices tied to the Middle East war drove much of the jump.
Why it matters: Fed officials have said they are watching for price gains spreading beyond energy. September showed increases across many categories.
- Used cars, airfares, medical care, apparel and education prices all rose.
- Inflation remains well above the Fed's 2% target and is rising.
How 3 sources split on this story
Source landscape
Factuality
High
Mixed
Low
Strong LeftLeftLean LeftCenterLean RightRightStrong Right
Political Bias
Coverage by lean
3 sources · 5 articles · 67% Center coverage
Where they split: Analysts disagree on whether the report pushes the Fed to hike in October or leaves room to hold.
Center coverage, 2 sources: The center frames the report as making the Fed's October decision unusually close, weighing inflation against a softening labor market.
Right coverage, 1 sources: The right frames the report as evidence of sticky, broad-based inflation that the Fed cannot look past.
What’s next: Futures-implied odds of an October hike rose from about 22% to roughly 45-50%.
- Martin Beck of PPHC said weaker jobs data and fragile consumer sentiment give the Fed room to hold.
- Christopher Hodge of Natixis said he expects no hike but that hawks gained arguments.
- Will Fed officials treat the broad price gains as lasting or temporary?
- How much of the increase reflects tariffs versus energy costs?
View all