The reading heightened expectations of a rate increase at the Federal Reserve’s December meeting.
Hotter-than-expected US inflation data sparked a Treasury selloff Tuesday, heightening expectations of a rate increase at the Federal Reserve’s December meeting.
Food prices saw a broad spike while a diesel crunch pushed up freight costs, widening out the number of affected goods categories. The price pressures are unlikely to be a one-month phenomenon, Santander’s chief US economist told The New York Times, as a simmering Iran war drives up the price of numerous commodities: “We run the risk that the floodgates open.”
A Mizuho economist said the central bank could hike by half a point in response: “The Fed skipped October and now will probably need to do some make up.”
— Brendan Ruberry
In brief
Hotter-than-expected US inflation data sparked a Treasury selloff Tuesday, heightening expectations of a rate increase at the Federal Reserve’s December meeting. Food prices saw a broad spike while a diesel crunch pushed up freight costs, widening out the number of affected goods categories. A Mizuho economist said the central bank could hike by half a point in response: “The Fed skipped October and now will probably need to do some make up.” — Brendan Ruberry
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