On Friday, the U.S. import price index registered a third consecutive monthly increase, albeit at a slower pace than anticipated, according to data released by the Labor Department. The index rose by 0.1% in September, falling short of the 0.5% gain economists surveyed by the Wall Street Journal had predicted.
Import prices, excluding fuel, saw a decrease of 0.2% for the second month in a row, marking no increase since February. Meanwhile, energy costs, primarily driven by petroleum and natural gas, surged by 4.4%, marking a fourth consecutive month of growth. This disrupts the typical trend of import prices acting as a counterbalance to inflation.
Year-on-year import inflation saw a 1.7% decrease in September, its smallest decline since February and significantly less than June’s reduction of 6.1%.
The Federal Reserve is closely monitoring these developments in the energy market as September’s inflation data indicates a pause in the steady decline in price pressures.
In response to these economic shifts, stocks DJIASPX were set to open higher while the 10-year Treasury yield BX:TMUBMUSD10Y fell amid sharp bond market moves. These movements reflect economists’ predictions and the Fed’s ongoing efforts to manage inflation.
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Source: Investing.com
