US Economics

Consumer Prices (Sep.)

US Data Response
Written by Capital Economics Economist

The 0.5% m/m rise in headline consumer prices in September was driven by a spike in gasoline prices due to Hurricane Harvey, while there was a more muted 0.1% rise in core consumer prices. But the latter partly reflects a drop back in vehicle and drug prices that we doubt will be sustained in the coming months, so the September CPI report is unlikely to stop the Fed hiking rates again in December.