All Eyes on September’s CPI Report

This week’s September CPI report is crucial for shaping the Federal Reserve’s interest rate decisions, as labor market and inflation data are the main factors guiding their policies. The outcome of the report could significantly influence financial markets, including stocks, bonds, commodities, and the dollar.

Inflation Trends: August Data in Focus

In August, total year-on-year CPI inflation slowed to its lowest rate since February 2021, dropping to 2.5% from 2.9%. However, core CPI remained steady at 3.2%, which is still above the Fed’s 2% target.

Future Outlook: CPI Projections

While inflation has been gradually easing, base effects could keep CPI above the Fed’s target until mid-2025. Still, September’s report is expected to show more progress, with forecasts indicating year-on-year CPI at 2.4% and core CPI at 3.1%.

Stay tuned to the next instalment of the Weekly Market Spotlight.