Published on Thursday, US CPI inflation data fits into the picture of slowing inflation. In September, the CPI dropped from 2.4% y/y from 2.5% y/y in August, and the monthly momentum remained as before for both the overall CPI and core inflation, but the market expected a slightly faster slowdown.
Moreover, the sustained growth of core inflation at the rate of 0.3% m/m led to a slight increase in the yearly index to 3.3% y/y. This means that the process of inflation decline in the US is progressing towards its target, but risks remain, which for the Fed will likely be an argument to maintain the path of monetary easing, but at a moderate pace. Today’s data does not change much in expectations, which is also evident in the moderate reactions in the bond market and the dollar.
Agata Filipowicz-Rybicka, Chief Economist and Director of DAM Alior Bank
The post “Inflation in the USA: Slowing down, but slower than expected. Markets calm” first appeared in CEO Magazine.
Source: https://ceo.com.pl/inflacja-w-usa-hamuje-ale-wolniej-niz-oczekiwano-rynki-spokojne-50488
