r/geopolitics • u/TimesandSundayTimes The Times • 14h ago

US inflation hotter than expected as Iran war stokes fuel costs

https://www.thetimes.com/business/economics/article/us-cpi-inflation-higher-forecast-iran-war-energy-prices-wkfcq38w5?utm_medium=Social&utm_source=Reddit&utm_content=branded
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u/TimesandSundayTimes The Times 14h ago

United States government borrowing costs rose sharply after consumer price inflation in the world’s largest economy accelerated to a five-month high, driven by the rising cost of petrol and energy.

Data from the Bureau of Labor Statistics showed that prices rose by 3.7 per cent in the year to September, up from an annual increase of 3.4 per cent in the previous month and higher than forecasts for a 3.6 per cent rise.

The stronger than anticipated jump drove up government borrowing costs, with the yield on the benchmark ten-year Treasury up by 0.08 percentage points to 5.3 per cent.

The yield on the two-year Treasury, which more closely reflects investor expectations for the Federal Reserve’s interest rate policy, increased by 0.13 percentage points to 4.92 per cent.

Petrol prices climbed by 9.1 per cent in the month to September and fuel oil was up by 15.3 per cent over the same period as the Iran war upends energy markets. On an annual basis, each category increased by 34.2 per cent and 74.2 per cent respectively.

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u/mycall 3h ago

Although hot, not end of times hot. Remain calm.