This is the last reading before the elections and with it coming in hotter than expected and jobless claims also coming in hotter the idea that the Feds will cut rates by another 50 points is gone. Looks like we might get a 25-point cut if we are lucky.
Key Points
- “The index for shelter rose 0.2 percent in September, and the index for food increased 0.4 percent. Together, these two indexes contributed over 75 percent of the monthly all items increase.”
- The year-on-year rate for core CPI actually picked up, to 3.3%. That’s the first increase of that magnitude in one and a half years.
- Meanwhile, there was a 258,000 jump in jobless claims -- but this will have been skewed by the hurricane among other factors.