🔥 US CPI: Headline inflation heats up, but the details matter.
September CPI came in at +0.6% MoM and +3.7% YoY, with gasoline prices jumping 9.1% and accounting for more than half of the monthly increase. Energy overall rose 5.2%.
Core CPI was +0.3% MoM and +2.6% YoY. But beneath that number, some renewed inflation pressure is appearing: core goods rose 0.3%, while shelter increased 0.4%.
📊 The takeaway for investors: Headline inflation looks ugly, but a substantial portion came from the energy shock. At the same time, the pickup in core goods and shelter means the Federal Reserve can’t simply dismiss this report.
The key question now shifts from“Is inflation falling?” to“Is underlying inflation starting to broaden again?”
That could keep rates and Treasury yields in focus and make the upcoming Federal Reserve decision particularly important for markets.
👀 Watching: $SPY $QQQ $IWM $TLT $GLD $DXY
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