U.S. Inflation
U.S. CPI Moves Higher
U.S. consumer prices rose in September as rental costs surged, but a steady moderation in underlying inflation pressures supported financial market expectations that the Federal Reserve would not raise interest rates next month. The report from the Labor Department on Thursday showed the annual increase in consumer prices excluding the volatile food and energy components last month was the smallest in two years. With the labor market remaining tight, however, reaching the Fed's 2% inflation target could take some time, making it likely that the U.S. central bank could keep rates elevated for longer.