The dollar was rising after the latest U.S. inflation data exceeded forecasts!
Supporting the case for further aggressive interest-rate increases, the dollar index was recently up 0.4% to 113.74, from 112.820 beforehand.
Tweet on USD rise after CPI Inflation report
U.S. Dollar Rises After CPI Inflation Report pic.twitter.com/DpFdcaAHwG
— The_Journalbiz (@the_journalbiz) October 13, 2022
Factset Chart on CPI U.S Inflation data
The annual rate of consumer price inflation fell to 8.2% in September from 8.3%, but was above the 8.1% expected by economists surveyed by the Journal. Core inflation accelerated to 6.6% in September from 6.3% in August, above the 6.5% forecast.
“Until the Federal Reserve sees some evidence of slowing core inflation and bottoming of labor market indicators, such as rising unemployment or slowing job openings, it is unlikely to change course,” HSBC’s Willem Sels wrote.
The hot core CPI reading sent U.S. government bond yields surging above their 2022 peaks, draining investors’ hopes that the Federal Reserve might have room to ease away from rapid interest-rate increases in the months ahead.