US Inflation Rises Less Than Expected in September

U.S. consumer prices rose less than expected in September, held back by a slower increase in the cost of rent and falling energy prices, as underlying inflation pressures appeared to cool slightly.

The modest price increases come despite a U.S. labor market that looks robust by most measures. A separate report on Thursday showed an unexpected but modest rise in the number of Americans filing for unemployment benefits last week.

With the readings only slightly below what analysts expected, the inflation report is not likely to impact expectations the Federal Reserve will raise interest rates at its December policy meeting.

U.S. Treasury yields extended their fall while U.S. stock index futures pared losses, as the data dented expectations of a more aggressive pace of Fed rate hikes. The dollar held at lower levels against a basket of currencies.

via Reuters

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