September Overall CPI Preview: Expected to Rise 3.6% Year-on-Year, Energy Price Increases Intensify Inflationary Pressure

PANews October 14 news: Economists surveyed by The Wall Street Journal expect U.S. headline CPI to rise 0.6% month-over-month in September and 3.6% year-over-year. Excluding volatile food and energy prices, core CPI is expected to rise 0.2% month-over-month and 2.5% year-over-year, a pace that is not "huge," but enough to keep inflationary pressure persistent and to continue putting pressure on the Federal Reserve, forcing it to respond.

Tony Rodriguez, head of fixed income strategy at Nuveen, said headline inflation will clearly rise, mainly driven by higher energy prices. "So far we have not seen that pressure pass through to core inflation, but the concern is that if this situation really persists for another two quarters, then inflationary pressure will begin to pass through to food and goods prices and various other areas."