Because the market had already priced in higher interest rates for some time prior to the data release, and the probability of a Fed rate hike in December was approaching 90%, the threshold for this CPI data to further hawkish market expectations was higher than the previous one, with the focus shifting to core inflation data.
The US September inflation data generally exceeded expectations, with the core monthly rate of increase remaining flat compared to the previous month. Housing services rose for the second consecutive month. Notably, core transportation services and healthcare services both saw increases, as these two indicators are most closely correlated with the Fed's focus on the PCE supercore inflation data.
