U.S. consumer prices were unchanged in September and underlying inflation retrea...
WASHINGTON - U.S. consumer prices were unchanged in September and underlying inflation retreated, supporting expectations the Federal Reserve will cut interest rates in October for the third time this year amid risks to the economy from trade tensions.
The longest economic expansion on record, now in its 11th year, is under threat from the 15-month-old U.S.-China trade war, slowing growth overseas and a likely disorderly exit from the European Union by Britain. The trade war has undermined business investment and helped to drive manufacturing into recession. Growth is also being restricted by the fading stimulus from last year’s $1.5 trillion tax cut package.
Excluding the volatile food and energy components, the CPI climbed 0.1% after gaining 0.3% for three straight months. The so-called core CPI was restrained by moderate gains in healthcare costs, as well as declines in apparel, new motor vehicles and communications prices. In the 12 months through September, the core CPI increased 2.4%, matching August’s rise.
The Fed cut rates by a quarter point last month after reducing borrowing costs in July for the first time since 2008. A further reduction is expected at the Oct. 29-30 meeting. Economists expect inflation will pick up and breach the Fed’s target in 2020 following the recent broadening of U.S. tariffs on Chinese goods to include a range of consumer goods. A tightening labor market is also expected to support inflation.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. consumer inflation muted; labor market tighteningU.S. consumer prices were unchanged in September and underlying inflation retrea...
Read more »
Decreasing U.S. job openings point to cooling labor marketU.S. job openings fell to a 1-1/2-year low in August and hiring declined, sugges...
Read more »
Levi Strauss Growing On Its Own, Cutting Out Off-pricersThe company is still seeing weakness in the U.S. wholesale business, but is tightening some distribution and expanding abroad.
Read more »
Weak U.S. producer inflation bolsters case for Fed rate cutU.S. producer prices unexpectedly fell in September, leading to the smallest ann...
Read more »
Three before you leave — What to watch for in the market Thursday including trade talks, inflationAll eyes will be on the high-stakes U.S.-China trade talks, but expectations are low on Wall Street.
Read more »
Members of Fleet Foxes, The Shins Performed ‘Suite: Judy Blue Eyes’ With Judy CollinsWatch Judy Collins join members of the Shins and Fleet Foxes in a performance of 'Suite: Judy Blue Eyes,' a Crosby, Stills & Nash song inspired by her
Read more »