The September consumer price index came in more than expected, increasing 0.4% for the month and 8.2% from a year ago, still hovering near the highest levels since the early 1980s. The report rattled financial markets as traders priced in likely more aggressive interest rate hikes ahead. As the Federal Reserve had earlier stated its commitment to bring inflation under control, this report could mean further hawkishness from the Fed.
“The more inflation comes in above expectations, the more they’re going to have to prove that commitment, which means higher interest rates and cooling in the underlying economy,” said Michelle Meyer, chief U.S. economist at the Mastercard Economics Institute.
