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Economists expect prices to have risen 3.1% in September, which would mark a slight increase from a 2.9% year-over-year increase recorded a month prior. The anticipated reading would amount to the highest inflation since May 2024.
The Federal Reserve is almost universally viewed as on track to cut interest rates next week, despite inflation running at a 3% annual rate in September — well above the Fed’s 2% target.
Futures traders see 96.7% odds that the central bank will trim the federal funds rate on Wednesday by a quarter percentage point, according to the CME FedWatch Tool.
The news that inflation could be worse is hardly comforting for millions of Americans still flabbergasted at the prices of necessities like food, housing and insurance.
The cost of living got even more expensive for Americans last month, with prices rising at the fastest pace since the start of the year.
If your cash savings aren’t earning at least this key rate, you’re falling behind. The good news: dozens of options make it easy to earn more.
The latest inflation report may or may not have an adverse impact on mortgage rates. It's too soon to tell definitively. But it won't help ease the Fed toward additional rate cuts, and it could complicate the mortgage rate climate more than it already is.