CPI Report Live Updates: Inflation Is Expected to Cool Further

Published On Oct 10, 2024, 7:02 AM

The upcoming Consumer Price Index (CPI) report is expected to show a slight decrease in inflation rates, with an annual increase of 2.3% for September, down from 2.5%. Core inflation, excluding volatile food and fuel prices, is forecasted to hold steady at 3.2%. This trend of cooling inflation is positive news for the Federal Reserve (Fed), which has already cut interest rates for the first time in over four years and may continue to do so if inflation further declines. However, there are concerns about persistent price increases in certain sectors, such as used cars and housing. Despite some recovery in consumer spending, major companies like PepsiCo and Domino's Pizza reported disappointing sales, indicating that consumers are still feeling the squeeze of inflation. Fed officials remain cautious about reducing rates too quickly due to the elevated core inflation levels and are debating the extent of future cuts. This climate of controlled inflation and potential rate cuts may impact market sentiments positively, particularly in sectors sensitive to interest rates.