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.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services