US September Inflation Data Released and Stirred Markets
With US September CPI data coming in above expectations, annual inflation rose to 3.7%. The impact of these developments on gold and gasoline prices was evaluated.
The release of the US Consumer Price Index data for September above expectations caused activity in global markets, while annual inflation materialized at the 3.7 percent level. The reflections of the announced data on gold and gasoline prices were evaluated by expert names.
US CPI Exceeds Expectations
Global markets stirred with the release of the US Consumer Price Index data for September. The inflation data, which recorded an annual increase of 3.7 percent, was closely followed in the markets.
Economist Arda Coşar stated that the data came in above expectations, noting that market expectations were exceeded in both CPI and core CPI.
Pressure Continues on Gold Prices
Evaluating the impact of the inflation data on gold prices, Arda Coşar stated that this situation caused bond yields to rise while putting downward pressure on precious metals.
It was emphasized that this situation, which strengthens the Fed's rate hike expectations, creates pressure on gold prices and investors should be cautious.
Gasoline Prices Triggered Inflation
The rise in energy prices in September was decisive in the increase in consumer inflation. Gasoline prices increased by 9.1 percent on a monthly basis, accounting for more than half of the monthly increase in the general CPI.
While the energy index showed an annual increase of 20.4 percent, the annual increase in gasoline prices reached the level of 34.2 percent.
Limited Change in Food Prices
While the food index remained unchanged on a monthly basis in September, food prices consumed at home declined by 0.1 percent. Declines were recorded in meat and dairy products groups.
Food prices showed an annual increase of 2.5 percent, while the annual increase in food consumed at home was calculated as 1.8 percent.
Core Inflation and Other Items
Core CPI, calculated by excluding food and energy prices, increased by 0.3 percent on a monthly basis in September. Annual core inflation, on the other hand, rose to 2.6 percent in September.
Within the scope of the core index, shelter prices recorded a 0.4 percent increase in September.
Fed's Interest Rate Policy and Expectations
September inflation data is being closely monitored in terms of the US Federal Reserve's monetary policy. The rise in headline inflation is of importance in the course of price pressures.
New York Fed President John Williams stated that another rate hike might be necessary this year, while indicating that additional tightening might not be needed in the subsequent period.