The US Department of Labor reported on October 10 that the consumer price index (CPI) in the US increased by 0.2% in September, higher than the 0.1% increase forecast by economists.
A report showed weekly U.S. jobless claims hit a 14-month high, suggesting the labor market is likely weakening despite a strong increase in nonfarm payrolls in September. However, much of the increase may be related to hurricanes and a strike at Boeing. Most of the increase in inflation came from a 0.4 percent increase in food prices and a 0.2 percent increase in housing costs, the Bureau of Labor Statistics said. Those increases offset a 1.9 percent drop in energy prices. Other items contributing to the overall increase in inflation included a 0.3 percent increase in used car prices and a 0.2 percent increase in new car prices. Health care services rose 0.7 percent and apparel prices rose 1.1 percent.
These indicators could be negative signals in the coming months. And the question is whether the pace of inflation will be controlled or not and whether interest rates will be cut further. That is an open question that is difficult to answer when the current market is unpredictable.