On Friday, the U.S. import price index registered a third consecutive monthly increase, albeit at a slower pace than anticipated, according to data released by the Labor Department. The index rose by 0.1% in September, falling short of the 0.5% gain economists surveyed by the Wall Street Journal had predicted.
Import prices, excluding fuel, saw a decrease of 0.2% for the second month in a row, marking no increase since February. Meanwhile, energy costs, primarily driven by petroleum and natural gas, surged by 4.4%, marking a fourth consecutive month of growth. This disrupts the typical trend of import prices acting as a counterbalance to inflation.
Year-on-year import inflation saw a 1.7% decrease in September, its smallest decline since February and significantly less than June's reduction of 6.1%.
The Federal Reserve is closely monitoring these developments in the energy market as September's inflation data indicates a pause in the steady decline in price pressures.
In response to these economic shifts, stocks DJIASPX were set to open higher while the 10-year Treasury yield BX:TMUBMUSD10Y fell amid sharp bond market moves. These movements reflect economists' predictions and the Fed's ongoing efforts to manage inflation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.