Fed's Barkin said inflation has become more persistent this summer.

India’s power deficit during peak hours has exceeded levels seen in this year’s summer heat, the Ministry of Power says. Nighttime shortfall this month reached 7.7 GW, surpassing April–May peak demand-driven shortages. Weak monsoon—possibly the driest in 17 years—has cut hydro output; hydro generation fell 12% YoY in the first three weeks of September and is set to record a fifth straight monthly decline. Coal-fired generation is compensating, rising 18% YoY this month and up 11% since the fiscal year began, amplifying demand on coal supply and power-system thermal capacity. The shortfall is linked to suppressed June–September rainfall driven by a strong El Nifio.

Despite a strong rebound in employment, Australia’s unemployment rate unexpectedly rose to a five-year high in August. The mixed jobs report did not change market pricing: markets assign a 95% probability the Reserve Bank of Australia will deliver a fourth rate hike to 4.6% next Tuesday. Oxford Economics Australia economist Oscar Guth said August job growth failed to keep pace with labor-force expansion, easing labor-market tightness; he added inflationary pressure also stems from oil prices, supporting expectations of a rate rise next week.