September CPI runs hot at 3.7%, and rate-hike bets jump
The inflation print that moved yields, the dollar and Fed expectations on Wednesday.
US consumer prices rose 3.7% year over year in September, up from 3.4% in August and above the 3.6% economists expected, the Labor Department said. Markets priced a higher chance of a Fed rate increase later this month: expectations of a quarter-point hike nearly doubled to 44% on the CME FedWatch tool. Treasury yields and the dollar rose, and the S&P 500 and Nasdaq opened lower. The day before, tech shares had fallen on worries about Chinese progress in AI chips and a Broadcom executive's comparison of AI buying to gambling.
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Consumer price index
After exploring Hot US inflation data dents Wall Street stocks, how the number is built is explained in Consumer price index.
A statistical estimate of the prices households pay, calculated as the weighted average price of a basket of consumer goods and services.
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