Gasoline set to lift US September inflation, TD projects
An early estimate sees headline CPI up 0.54% on the month, driven by an almost 8% jump in gasoline.
By BBCorp
What happened
TD Securities economists published an early projection for the US September Consumer Price Index, expecting headline CPI to rise 0.54% on the month. They attribute most of the increase to an almost 8% jump in gasoline prices, along with firmer food prices.
Why it matters
The Consumer Price Index is the most closely watched measure of US inflation, and the Fed has just raised rates to bring inflation down. A strong reading would reinforce expectations of further tightening, which tends to support the dollar and weigh on gold and stocks. When energy drives the jump, markets also watch the core figure, which strips out food and energy, to judge whether price pressure is spreading.
What to watch
Gasoline prices through the rest of the month, other economists' forecasts as the release approaches, and how Fed officials describe the inflation outlook.
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