1. Home
  2. Markets Updates
  3. U.S. annual CPI inflation declines to 8.2% in September vs. 8.1% expected

U.S. annual CPI inflation declines to 8.2% in September vs. 8.1% expected

The Consumer Price Index rose 8.2 percent in the year through September, another stubbornly high result that spooked the markets.

13 October 2022

Share the article:

September’s inflation report: prices rise faster than expected!

The US Bureau of Labor Statistics reported that inflation in the US, as measured by the Consumer Price Index (CPI), declined to 8.2% on a yearly basis in September from 8.3% in August. This reading came in higher than the market expectation of 8.1%.

image2.png

Year-over-year percentage change in the Consumer Price Index, according to the Bureau of Labor Statistics.

In the meantime, the Core CPI, which excludes volatile energy and food prices, was up 0.6% and 6.6%, on a monthly and yearly basis, respectively. Both of these figures surpassed analysts’ estimates.

How did the markets react?

Reaction to the updated CPI data was subdued in the first hour after the release of the data. For example, the hot inflation data provided a boost to the greenback with the initial market reaction. As of writing, the $US Dollar was up 0.28% on a daily basis at 113.58.

image1.png

But the main U.S. indices started their way down. For example, the $SPX500 and the $DOW are rapidly losing points.

image3.png

This is due to the fact that inflation has risen compared to the previous period. This means that the hawkish Fed policy is not effective enough, and soon the key rate will be raised again.

Why is it important for investors and traders?

Fresh inflation data showed that consumer prices climbed more quickly than expected, bad news for the Federal Reserve as it tries to bring the most rapid price increases in four decades back under control. Overall inflation climbed 8.2% in the year through September, more than what economists expected. The rate remains extremely high.

Fed officials and Wall Street analysts will be more closely watching the monthly figures, including what happened between August and September. While the annual numbers reflect what has happened cumulatively over the past 12 months, the monthly data gives a clearer snapshot of how prices are evolving in real-time. Those monthly figures offered reasons for worry.

In particular, they could be a factor in the continuation of the US Federal Reserve’s hawkish policy.

The increase in the rate causes a natural market reaction. In particular, in the near future, the $US dollar may rise by a few more points and the key stock indices ($DOW, $NASDAQ, $SPX500) may lose another 1% to 2%.

Summary

  • The Consumer Price Index rose 8.2 percent in the year through September, another stubbornly high result that spooked the markets.
  • Inflation came in faster than expected in September, bad news for the Fed.
  • It is worth worrying about the fact of the next hawkish increase in the key rate of the Fed, which is guided by inflation data.
  • In the near future, the $US dollar may rise by a few more points and the key stock indices ($DOW, $NASDAQ, $SPX500) may lose another 1% to 2%.
IMPORTANT NOTICE: Any news, opinions, research, analyses, prices or other information contained in this article are provided as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and therefore, it is not subject to any prohibition on dealing ahead of dissemination. Past performance is not an indication of possible future performance. Any action you take upon the information in this article is strictly at your own risk, and we will not be liable for any losses and damages in connection with the use of this article.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Related articles

NAGA Weekly Recap July 28 - August 1, 2025
1 August 2025
From easing trade tensions to oil surges and a rising dollar, this week’s market recap breaks down the biggest shifts across equities, commodities, and currencies.

Read more

Gladys Eguia

XAUUSD Struggles to Reclaim 3296 in Bear-Controlled Setup
31 July 2025
XAUUSD shows corrective bounce below major EMAs in a bearish setup, with 3296 as near-term resistance and 3164 as critical support to watch.

Read more

Top Economic Events to Watch | July 28 - August 1, 2025
28 July 2025
Stay ahead of the markets with NAGA’s top 3 U.S. economic events for July 29–Aug 2. Get key insights on the Fed’s rate decision, inflation trends, and the July jobs report.

Read more

Gladys Eguia

RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.