US Inflation Jumps to 3.7%, Reigniting Talk of Rate Hike
US inflation accelerated to 3.7% in September driven by energy, and the producer price index jumped 1.3%, bringing the possibility of an October rate hike back into focus.
Inflation in the United States accelerated to 3.7% in September, driven by rising energy and gasoline prices.
The producer price index jumped 1.3% in September, with about half of this increase coming from energy, according to reports.
This data brought the possibility of a US rate hike in October back to the table, helping push the 10-year Treasury yield to 5.123%.
Reuters reported that the bet on a rate hike is now seen as a close call.
What do these terms mean?
Consumer Price Index: A measure of the change in prices of a basket of goods and services purchased by consumers, used to measure inflation.
Producer Price Index: A measure of the change in prices of goods as they leave the factory before reaching the consumer.
Bond Yield: The return an investor achieves from a bond's interest payments, which typically rises with expectations of interest rate hikes.
Rate Hike: An increase in the central bank's benchmark interest rate to curb inflation.
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