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13 Oct 2022

Market Wire: Core Inflation Accelerates More Than Anticipated, Raising Rate Expectations

Core US consumer prices climbed by more than expected in September, hitting a four-decade high as inflation pressures broadened across most services sectors. According to data released by the Bureau of Labor Statistics this morning, the headline consumer price index rose 8.2 percent in September from the same period last year, up 0.4 percent on a month-over-month basis. Economists polled by major data providers ahead of the release expected an 8.1 percent annual gain and a 0.2 percent increase relative to August. A -2.1 percent month-over-month drop in energy prices — helped by an -4.9 percent tumble in the gasoline...

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Market Briefing: Currencies Hold Steady as Investors Brace for Inflation Data

With the week’s biggest data release set to drop in less than half an hour, financial markets are still hitting the snooze button. Treasuries are flat, futures are stable, and the dollar is slightly weaker as traders limit risk. Investors expect the Bureau of Labor Statistics to report an acceleration in core inflation, adding to an already-compelling case for more tightening when the Federal Reserve meets in the first week of November. Minutes taken during the Federal Reserve’s last meeting, released yesterday, delivered no new insight for market participants. Policymakers remained committed to their “higher for longer” mantra, noting that...

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