{"id":112583,"date":"2024-10-10T16:23:45","date_gmt":"2024-10-10T09:23:45","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=112583"},"modified":"2024-10-10T16:23:45","modified_gmt":"2024-10-10T09:23:45","slug":"inflation-expected-to-slow-in-september-but-upside-risks-loom-amid-start-of-fed-easing","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=112583","title":{"rendered":"Inflation expected to slow in September but &#8216;upside risks&#8217; loom amid start of Fed easing"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p>September&#8217;s Consumer Price Index (CPI) will serve as the latest test of whether inflation will continue to ease as the Federal Reserve debates its next interest rate decision.<\/p>\n<p>The report, set for release at 8:30 a.m. ET on Thursday, is expected to show headline inflation of 2.3%, a deceleration <a data-i13n=\"cpos:2;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/inflation-consumer-prices-rise-at-slowest-pace-since-early-2021-132305109.html\" data-ylk=\"slk:from August's 2.5% annual gain in prices;cpos:2;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">from August&#8217;s 2.5% annual gain in prices<\/a>, which marked the lowest annual rate since early 2021. Over the prior month, consumer prices are expected to have risen 0.1%, down from the 0.2% increase seen in August.<\/p>\n<p>On a &#8220;core&#8221; basis, which strips out the more volatile costs of food and gas, prices in September are expected to have risen 3.2% over last year, unchanged from August&#8217;s increase. Economists expect monthly core price increases to slow slightly, estimating an uptick of 0.2% compared to August&#8217;s 0.3% gain in prices, according to Bloomberg data.<\/p>\n<p>Inflation, although moderating, has remained above the <a data-i13n=\"cpos:3;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/why-the-fed-targets-2-inflation-125410034.html\" data-ylk=\"slk:Federal Reserve's 2% target;cpos:3;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">Federal Reserve&#8217;s 2% target<\/a> on an annual basis.<\/p>\n<p>But the Federal Reserve has recently shifted its attention to the state of the labor market, which has been <a data-i13n=\"cpos:4;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/a-surprisingly-resilient-us-economy-is-once-again-leading-stocks-higher-morning-brief-100002751.html\" data-ylk=\"slk:surprisingly resilient;cpos:4;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">surprisingly resilient<\/a> in the face of high interest rates.<\/p>\n<p>Data from <a data-i13n=\"cpos:5;pos:1\" href=\"https:\/\/www.bls.gov\/news.release\/empsit.nr0.htm\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:the Bureau of Labor Statistics;cpos:5;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">the Bureau of Labor Statistics<\/a> released Friday showed the labor market added 254,000 payrolls in September, more additions than the 150,000 expected by economists, while the unemployment rate fell to 4.1% from 4.2%.<\/p>\n<p>The strong report altered expectations about the path forward for interest rates, with markets <a data-i13n=\"cpos:6;pos:1\" href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:now pricing in;cpos:6;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">now pricing in<\/a> a smaller 25 basis point cut in November rather than another jumbo 50 basis point cut.<\/p>\n<p><em>Read more: <\/em><a data-i13n=\"cpos:7;pos:1\" href=\"https:\/\/finance.yahoo.com\/personal-finance\/what-a-fed-rate-cut-would-mean-for-bank-accounts-cds-loans-and-credit-cards-183320880.html\" data-ylk=\"slk:What the Fed rate cut means for bank accounts, CDs, loans, and credit cards;cpos:7;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\"><em>What the Fed rate cut means for bank accounts, CDs, loans, and credit cards<\/em><\/a><\/p>\n<p>&#8220;We think the bar for the Fed to not cut rates at all in November is high,&#8221; Citi economist Veronica Clark wrote in a note to clients on Monday. &#8220;Ultimately, we expect a still subdued inflation backdrop and a reemergence of weaker labor market trends in the next few months will have officials cutting rates by 50bp in December after a smaller 25bp cut in November.&#8221;<\/p>\n<p>A hot reading could still spook markets, though.<\/p>\n<p>&#8220;Good news is good news for stocks as long as inflation doesn&#8217;t flare up again,&#8221; Bank of America equity strategist Ohsung Kwon wrote on Monday. &#8220;Following the blowout jobs report last Friday, we believe the importance of CPI this week has risen.&#8221;<\/p>\n<p>&#8220;While stocks should be able to withstand a slight upside surprise in inflation given improving macro data, a sizeable surprise could bring uncertainty on the easing cycle and more volatility into the market,&#8221; he warned.<\/p>\n<p><button class=\"link caas-button readmore-button-finance collapse-button readmore-button-class\" data-ylk=\"elm:readmore;slk:Story continues\"><span class=\"readmoreButtonText\">Story continues<\/span><\/button><\/p>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\" style=\"max-height: 720px\">\n<div>\n<div class=\"caas-img-container caas-img-loader\" style=\"padding-bottom:75%\"><img decoding=\"async\" class=\"caas-img caas-lazy has-preview\" alt=\"Core inflation has remained stubbornly elevated amid higher costs for shelter and rents (Courtesy: Associated Press)\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/k0vuz5T4UAUfLGDKhCtu3Q--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTcyMA--\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2024-10\/91edf7e0-8667-11ef-9dfd-7107a3ce517b\"\/><img decoding=\"async\" alt=\"Core inflation has remained stubbornly elevated amid higher costs for shelter and rents (Courtesy: Associated Press)\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/k0vuz5T4UAUfLGDKhCtu3Q--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTcyMA--\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2024-10\/91edf7e0-8667-11ef-9dfd-7107a3ce517b\" class=\"caas-img\"\/><\/div>\n<\/div>\n<\/div>\n<p><figcaption class=\"caption-collapse\">Core inflation has remained stubbornly elevated amid higher costs for shelter and rents. (Associated Press)<span class=\"caption-credit\"> (STRF\/STAR MAX\/IPx)<\/span><\/figcaption><\/p>\n<\/figure>\n<h2 class=\"caas-jump-link-heading\" id=\"sticky-shelter-core-services\"><strong>Sticky shelter, core services<\/strong><\/h2>\n<p>Core inflation has remained stubbornly elevated <a data-i13n=\"cpos:8;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/housings-outsized-role-in-the-feds-inflation-problem-morning-brief-100031015.html\" data-ylk=\"slk:due to higher costs for shelter;cpos:8;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">due to higher costs for shelter <\/a>and core services like insurance and medical care.<\/p>\n<p>&#8220;We see some risks of stronger inflation in large components like owners\u2019 equivalent rent relative to our forecasts,&#8221; Citi&#8217;s Clark said. Owners&#8217; equivalent rent is the hypothetical rent a homeowner would pay for the same property.<\/p>\n<p>Bank of America added sticky rent inflation and an uptick in lodging away from home, used car prices, and airfares will likely translate to a firmer core reading in September month over month after the latter two categories saw price declines in August.<\/p>\n<p>&#8220;While we expect core CPI to be on the firmer side of recent readings in September, our forecast does not change our medium-term outlook for further disinflation,&#8221; Bank of America economists Stephen Juneau and Jeseo Park wrote in a preview of the data. &#8220;A cooler labor market coupled with anchored inflation expectations should keep disinflation on track.&#8221;<\/p>\n<p>&#8220;That said, there are some upside risks to consider, including the East coast port strikes, rising oil prices and higher shipping costs,&#8221; the duo added. &#8220;We think these risks would contribute to a more gradual disinflationary process than we currently expect.&#8221;<\/p>\n<p><a data-i13n=\"cpos:9;pos:1\" href=\"https:\/\/www.yahoo.com\/author\/alexandra-canal\/\" data-ylk=\"slk:Alexandra Canal;cpos:9;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><em>Alexandra Canal<\/em><\/a><em> is a Senior Reporter at Yahoo Finance. Follow her on X <\/em><a data-i13n=\"cpos:10;pos:1\" href=\"https:\/\/twitter.com\/allie_canal\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:@allie_canal;cpos:10;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><em>@allie_canal<\/em><\/a><em>, <\/em><a data-i13n=\"cpos:11;pos:1\" href=\"https:\/\/www.linkedin.com\/in\/alexandra-canal-83643889\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:LinkedIn,;cpos:11;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><em>LinkedIn,<\/em><\/a><em> and email her at alexandra.canal@yahoofinance.com.<\/em><\/p>\n<p><a data-i13n=\"cpos:12;pos:1\" href=\"https:\/\/finance.yahoo.com\/topic\/stock-market-news\/\" data-ylk=\"slk:Click here for the latest stock market news and in-depth analysis, including events that move stocks;cpos:12;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><strong>Click here for the latest stock market news and in-depth analysis, including events that move stocks<\/strong><\/a><\/p>\n<p><a data-i13n=\"cpos:13;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/\" data-ylk=\"slk:Read the latest financial and business news from Yahoo Finance;cpos:13;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><strong>Read the latest financial and business news from Yahoo Finance<\/strong><\/a><strong>.<\/strong><\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/finance.yahoo.com\/news\/inflation-expected-to-slow-in-september-but-upside-risks-loom-amid-start-of-fed-easing-191301225.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>September&#8217;s Consumer Price Index (CPI) will serve as the latest test of whether inflation will continue to ease as the Federal Reserve debates its next interest rate decision. The report, &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=112583\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-112583","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/112583","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=112583"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/112583\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=112583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=112583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=112583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}