U.S. Inflation Data Anticipated to Influence Federal Reserve's December Decisions

According to PANews, investors are closely monitoring the upcoming release of the United States' September Consumer Price Index (CPI) on Friday evening. The overall CPI is expected to rise by 0.4% from the previous month, while the core CPI is anticipated to increase by 0.3%. Despite the ongoing government shutdown, now in its fourth week, the U.S. Bureau of Labor Statistics has confirmed that the inflation report will be published. This data is crucial for the Social Security Administration to determine the 2026 annual cost-of-living adjustments for millions of retirees and other beneficiaries. Analysts believe that the CPI figures are unlikely to disrupt the Federal Reserve's plan to cut interest rates by 25 basis points next week. However, the data may provide insights into potential actions at the Federal Reserve's December meeting. Traders have largely priced in the expected rate cut next week and another reduction in December. Julien Lafargue, Chief Market Strategist at Barclays Private Bank, stated that only a significantly higher-than-expected CPI would alter the market's expectation of further rate cuts by the Federal Reserve.