Institutions: U.S. September headline CPI annual rate expected to accelerate to 3.7%, core CPI becomes key

Odaily report: Capital.com senior market analyst Daniela Hathorn stated that Wednesday's U.S. CPI data is expected to show that September headline inflation accelerated to around 3.7%, reflecting the impact of rising energy prices, while core inflation is expected to be around 2.5%. The difference between the two is especially important for the Federal Reserve. The Fed raised rates in September, but now faces a difficult task: curbing inflation without putting unnecessary pressure on economic growth.

The market is currently pricing in about an 80% probability that the Fed will hold steady in October. If the core data comes in soft, it may reinforce this expectation and bring some relief to stocks and bonds; if it exceeds expectations, it may once again push yields higher and bring new pressure on risk assets. (Jinshi)