Entity: In the US, both the overall and core CPI year-over-year rates for September are expected to be close to 3%, signaling a potential inflationary concern for the Federal Reserve.
BlockBeats News, October 23: Dean Baker, Chief Economist of the UK think tank CEPR, stated that the US September CPI data is likely to show a growth rate similar to August. The energy component rose by 0.7% in August and is also likely to show a rapid growth rate in September. The household food component increased by 0.6% in August, and the growth rate in September may slow down. The September core CPI monthly rate is likely to reach 0.3% again, which may round up to 0.4%.
Furthermore, both the overall and core CPI year-on-year rates in September are likely to be close to 3.0%, a full percentage point higher than the Fed's 2.0% target. For the Fed, the level of inflation may be less concerning than the direction of change. It is more likely that the inflation rate will rise rather than fall, at least until all the impacts of tariffs are passed on to consumers. If new tariffs are implemented and the effects spread to more industries, the situation will become more complex. Unless a significant economic recession occurs, it is difficult to imagine a scenario in the short term where inflation meets the Fed's target. (FXStreet)
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