The core consumer price index (CPI) climbed 3.3% year-over-year in September, signalling continued inflationary pressure in the U.S.

Month-over-month, the increase was 0.3%, slightly higher than the expected 0.2%, raising concerns about the Federal Reserve’s ability to ease policy.

This latest inflation data narrows the Fed’s room to manoeuvre, making a significant rate cut at their next meeting less likely.

In other economic news, weekly U.S. unemployment claims have risen to 258,000.

Latest numbers

Ticker’s Ahron Young spoke with Steve Gopalan from SkandaFX about the latest numbers.

Steve Gopalan discusses the impact of rising unemployment claims, inflation, and geopolitical tensions on the market, including the potential effects of Israeli strikes on Iran and China’s policies.

He also addresses expectations for the Fed reserve rate cut and near-term risks affecting the Australian economy and talks about how traders are preparing for China’s Finance Minister news conference on fiscal policy.

The increase in claims is partly attributed to the impact of Hurricane Helene and furloughs at Boeing.

Economists are closely watching how these factors will play into broader economic trends.

With inflation rising and unemployment numbers fluctuating, the economic outlook remains uncertain.