Source: Sharecast
Consumer prices climbed by 0.2% on a month-on-month basis in September, more than the 0.1% increase expected by economists, while the closely watched "core" price index, which strips out volatile food and energy costs, also came in hotter than the 3.2% expected by analysts at 3.3%.
The CPI inflation measure, on the other hand, cooled slightly to 2.4% on an overall basis last month, down from 2.5% in August but short of expectations for a reading of 2.3%.
Food inflation accelerated in September, with overall food prices up 0.4% month-on-month, while shelter costs eased slightly, with rents cooling 0.2% over the period.
ADSS' Mahmoud Alkudsi said: "Inflation appears to still be cooling off from the elevated levels seen earlier in the year, with September’s year-on-year CPI coming slightly above the forecasted 2.3%. This has continued to the disinflationary pattern we have seen in the last several months, although not at the pace the markets had predicted. This pattern comes contrary to the unexpectedly strong job market data reported earlier in the month. These developments may give the Federal Reserve conflicting views when considering the pace of its interest rate cuts."
Reporting by Iain Gilbert at Sharecast.com