Fitch US economics head Olu Sonora said the latest inflation report is a
red‑light warning for the Fed. Energy inflation pushed the headline as expected,
but the key problem is core inflation—particularly super‑core services
inflation—remaining stuck above 3%. Higher energy costs are beginning to feed
into broader services prices, raising the risk of a more persistent inflation
surge. An end‑of‑month rate hike is now clearly under discussion, though
December remains the more likely timing.
