FX.co ★ US core CPI climbs 0.3% in September

According to the latest data from the US Bureau of Labor Statistics, consumer prices in the country rose by 0.3% in September. The agency reports that the core Consumer Price Index (CPI), which excludes food and energy costs, increased by 0.3% for the second consecutive month. Annual core inflation in the US reached 4.1%, slightly down from 4.3% in August. Several factors influenced the dynamic of prices, including a sharp surge in real estate prices, increased costs for entertainment services, and a rise in auto insurance premiums. At the same time, the overall CPI jumped by 0.4% in September, largely due to higher energy prices. Analysts contend that the resilience of the US labor market continues to sustain domestic demand for goods and services. This is expected to keep inflationary pressure above the Federal Reserve's target rate of 2% in the near term. Against this backdrop, experts anticipate that the Fed will continue to tighten its monetary policy. "There are significant risks of further rate hikes that the market is underestimating," experts at Bloomberg Economics say. Previously, Nela Richardson, chief economist at ADP, warned of the enduring inflationary risks in the US. These threats are attributed to structural changes in the American labor market, exacerbated by an aging population. The regulator is increasingly struggling to maintain growth momentum by resorting to "zero or near-zero interest rates" due to high volatility in consumer prices.