According to the latest data from the US Bureau of Labor Statistics, the US CPI rose 3.7% year on year in September, clearly rebounding from 3.4% in August, the highest level since May; the core CPI rose 2.6% year on year, up 2.4% from the previous value. In response, Bai Xue, vice director of Dongfang Jincheng Research, said that US inflation clearly rebounded and price increases spread clearly in September. The energy shock resonated with core inflation stickiness, and the “last mile” of inflation returning to the 2% target was still uneven. The rebound in inflation strengthened the need for the Federal Reserve to continue to raise interest rates during the year, but cooling employment and tightening financial conditions constrained the pace of interest rate hikes. The probability of staying on hold in October and raising interest rates by another 25 basis points in December is expected to rise.

According to the latest data from the US Bureau of Labor Statistics, the US CPI rose 3.7% year on year in September, clearly rebounding from 3.4% in August, the highest level since May; the core CPI rose 2.6% year on year, up 2.4% from the previous value. In response, Bai Xue, vice director of Dongfang Jincheng Research, said that US inflation clearly rebounded and price increases spread clearly in September. The energy shock resonated with core inflation stickiness, and the “last mile” of inflation returning to the 2% target was still uneven. The rebound in inflation strengthened the need for the Federal Reserve to continue to raise interest rates during the year, but cooling employment and tightening financial conditions constrained the pace of interest rate hikes. The probability of staying on hold in October and raising interest rates by another 25 basis points in December is expected to rise.