Market Wire, North America

Underlying consumer prices rose more quickly than expected in the United States last month, strengthening the case for more rate hikes from the Federal Reserve, and lifting the dollar. According to data published by the Bureau of Labor Statistics this morning, the core consumer price index—with highly-volatile food and energy prices excluded—rose 0.3% in September from the prior month, maintaining the pace set in August, and climbing 2.6% relative to the same period last year, well ahead of the 2.4% consensus forecast as price pressures broadened across categories. The more-volatile all-items headline price measure jumped 0.6% from the prior month...

As had been widely expected, the Federal Reserve hiked interest rates and telegraphed at least one additional move this year as policymakers grapple with rising inflation risks — putting the central bank on a hawkish footing that should help stabilise the dollar. After two days of discussion, the Federal Open Market Committee voted unanimously to raise the target range for the federal funds rate between 3.75 and 4.00%, matching market expectations that had built after August’s strong jobs and inflation reports. In a brief statement setting out the decision, the committee again acknowledged persistently-high uncertainty but noted that economic activity...