US Consumer Prices Rise in September, Reinforcing Fed's Intent to Keep Rates High

US consumer prices rose in September, driven by a surge in rental costs, reinforcing the Federal Reserve's intent to keep interest rates high to further slow inflation. The rise in consumer prices is likely to discourage the Fed from tightening monetary policy further. Additionally, US consumers' year-ahead inflation expectations rose sharply in early October, leading to a deterioration in Americans' views of their finances and sentiment. The University of Michigan's consumer sentiment index fell sharply in October, reflecting concerns about inflation and worse expected business conditions.