US Inflation Stays High, Boosting Odds of Fed Rate Hike

In September 2026, U.S. inflation data showed that consumer prices continued to rise, fueling expectations that the Federal Reserve will raise interest rates. The inflation figures came alongside falling oil prices, which added to the mixed economic picture.

The data lifted the dollar and pushed U.S. stocks higher, while government bond yields remained near multiyear highs. Attention now turns to the Fed's upcoming rate decision, with economists suggesting the central bank may defy earlier expectations and hike rates again.