The increase in consumer prices in the United States in September was greater than expected, and high inflation is still suppressing the world's largest economy .
According to the Bureau of Labor Statistics, U.S. consumer prices rose 0.4% month-on-month in September, higher than the 0.3% forecast by Dow Jones News Agency .
is an annualized increase of 8.2%, lower than the peak of about 9% in June, but is still near its high since the early 1980s.
Excluding the core CPI of food and energy, the growth rate is even more astonishing, with a monthly increase of 0.6%, surpassing the Dow Jones expected by 0.4%.
core inflation rose 6.6% year-on-year, the largest year-on-year increase since August 1982.
inflation data initially shakes the financial market, US stock futures index fell, while US bond interest rates rise, so traders believe that Fed will raise interest rates more actively.
But in the early trading Thursday, the U.S. stocks pulled back from the decline and closed Dow Jones Industrial Index even rose more than 800 points. Michelle Meyer, an expert at the MasterCard Economic Research Institute, pointed out that the Fed has shown that it will be committed to price stability and to reduce inflationary pressure. Therefore, the higher the inflation, the more relevant the Fed will show, which means increasing interest rate hikes and cooling the economy.
White House issued a statement saying that US President Biden said that the just-released Consumer Price Index (CPI) shows that some progress has been made in fighting price increases, but there is more work to be done.
Biden pointed out that curbing inflation is its top priority, and mentioned that the United States is more capable of dealing with this challenge than any major economy due to its economic plan.
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