New inflation data released on Wednesday is raising the odds of a Federal Reserve interest rate hike later this month, potentially putting a spotlight on rising mortgage rates ahead of the midterm elections.
Overall prices jumped 3.7% in the 12 months through September, according to consumer price index data release by the Labor Department. That’s up from 3.4% annual inflation the prior month, and more than economists had expected.
Markets wasted no time pricing in the new inflation data, with investors raising the probability of a Fed rate hike in October to 35%, up from 22% a day earlier, according to CME FedWatch.
